Cango bought 50 EH/s worth of mining power towards completion of 2024, making it among the most significant gamers in the bitcoin mining market.
Jan 3, 2025, 3:25 p.m. UTC
The bitcoin (BTC) mining market was shocked in the last months of 2024 by the abrupt entryway of a brand-new gamer: Cango (CANG), a Chinese company that focuses on supplying loans to vehicle purchasers.
Based in Shanghai and valued at $363 million on the stock exchange, Cango remains in the procedure of getting 50 exahashes per 2nd (EH/s) worth of mining power, suggesting that the car loaning platform will turn into one of the biggest bitcoin miners on the planet when its whole fleet browses the web.
“I think it’s unexpected for individuals in the [bitcoin mining] market since no one has actually ever become aware of Cango in the past,” Juliet Ye, the business’s senior director of interactions, informed CoinDesk in an interview. “But the history of Cango is a history of adjustment. We’ve diversified into various locations a minimum of 2 or 3 times [since the firm was established in 2010]”
Getting such a big bitcoin mining fleet isn’t inexpensive. Cango paid $256 million in money for the very first 32 EH/s worth of calculating power, which it bought from bitcoin mining maker Bitmain. It will be providing $144 million worth of shares for the staying 18 EH/s, which it is obtaining from Golden TechGen– a company owned by previous Bitmain Chief Financial Officer Max Hua– along with other concealed mining device sellers. As soon as the deal is settled, Golden TechGen and these other sellers will wind up owning around 37.8% of Cango.
The diversity into bitcoin mining is currently flourishing. Cango’s stock ended up 2024 at $4.56, up more than 362% from the start of that year. Even much better, Ye stated, this brand-new bitcoin mining method has actually catapulted Cango into the spotlight.
“It’s been actually difficult for us to get traction around the business, as a little- to mid-cap noted Chinese company in the U.S.,” Ye stated. “All of an unexpected, a great deal of individuals are quite thinking about Cango. The buzz around the business– we’ve never ever seen this before in the past.”
50 EH/s
Cango is more utilized to assisting Chinese banks concern loans for individuals wanting to purchase cars and trucks. The company, which went public in 2018, was currently diversifying its operations years before getting its bitcoin fleet.
Cango began assisting in automobile exports from China to other parts of the world and has actually purchased Li Auto, a Chinese electrical lorry maker. Following that financial investment, Cango checked out company chances in the renewable resource sector, consisting of high-compute power tasks associated with AI, before venturing into on bitcoin mining.
“Bitcoin mining is an excellent method to rebalance energy grids,” Ye stated, describing the reality that bitcoin miners can quickly change their rigs on and off once again. Some jurisdictions, like Texas,
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