Cango Reports 'Large' Bitcoin Mining in July, Boosting Corporate Coffers
Three months after divesting its auto finance unit to focus on Bitcoin mining, Chinese conglomerate Cango (CANG) has significantly increased its cryptocurrency mining output, indicating that its acquisition of Bitmain mining rigs is helping it expand its capacity amid growing competition in the industry.
Cango mined 650.5 bitcoins (BTC) in July, up significantly from the 450 BTC mined in June, Farside Investors reported. Farside also noted that it has added Cango to its miner panel, excluding Hut 8 due to a lack of monthly mining reports.
Source: Farside Investors
As Cointelegraph reported, Cango mined a total of 954.5 BTC in April and May, the first two months after switching to Bitcoin mining entirely.
Cango currently holds 4,529.7 BTC, equivalent to about $512 million, placing the company among the top twenty holders of publicly traded Bitcoin. Industry data shows the company is close to competitors like GameStop and ProCap BTC.
The increase in production comes after Cango acquired mining equipment from Bitmain for $256 million, giving it a hashrate of 32 exahashes per second (EH/s). The deal, announced last November as part of a larger $400 million investment strategy, marked Cango’s official transition from auto finance to Bitcoin mining.
The company's shift in focus was part of a broader diversification strategy aimed at capitalizing on the growth of digital assets. Cango said it leveraged its existing infrastructure and expertise in digital asset management to move into bitcoin mining.
Related: Bitcoin Mining Difficulty Reaches All-Time High, But Decline Expected in August
Cango's pivot puts China in the crypto spotlight
Despite a recent stock price decline and negative year-to-date performance, Cango shares have risen 158% in the past 12 months. The significant gains began last fall, when the company announced its intentions to get into Bitcoin mining.
Cango's share price has risen sharply since last fall. Source: Yahoo Finance
Before its move to cryptocurrency, Cango was primarily known as a Chinese auto finance platform that provided consumer loans and facilitated online car exports. The company went public in 2018.
Notably, Cango remains headquartered in China, a country with a complex and often restrictive stance on cryptocurrencies. China effectively banned Bitcoin mining in mid-2021.
As Galaxy Research reported at the time, government restrictions on the mainland led to increased computing power in neighboring countries like Kazakhstan, as well as North America, as part of a larger strategic shift in miners' mining operations.
Magazine: China criticizes US cryptocurrency policy, new shadow markets Telegram: Asia Express
Source: cryptonews.net
