Chinese company Cango has made a significant leap in Bitcoin mining, producing 650.5 BTC in July, a notable increase from 450 BTC in June. This growth comes just three months after the company fully pivoted to Bitcoin mining by divesting its auto financing division.
The surge in mining output highlights the impact of Cango’s recent acquisition of Bitmain mining equipment, boosting its operational capacity amid rising competition in the crypto mining industry.
According to reports from Farside Investors, Cango has been added to the mining dashboard with a monthly production update that reflects its growing presence, while Hut 8 was removed due to its lack of monthly disclosures.
Prior to this, Cango mined a total of 954.5 BTC during April and May, immediately after its strategic repositioning in Bitcoin mining. Currently, the company holds approximately 4,529.7 BTC, valued at nearly $512 million, ranking it among the top publicly traded entities in Bitcoin holdings, approaching peers like GameStop and ProCap BTC.
This impressive increase in mining output follows a $256 million investment in new mining rigs from Bitmain, securing a powerful 32 exahashes per second (EH/s) hashrate. The acquisition was part of a larger $400 million investment plan announced last November, marking Cango’s definitive move from auto finance to digital asset mining.
Cango’s strategic pivot reflects a diversification plan to leverage the growing digital asset market. The company has capitalized on its existing expertise and infrastructure in digital asset management to facilitate this transition and boost crypto mining operations.
Related: Bitcoin mining difficulty hits all-time high but is expected to decline in August.
The Impact of Cango’s Pivot on China’s Crypto Scene
Despite a recent decline in its stock price and a negative year-to-date trend, Cango’s shares have surged by 158% over the past year, largely triggered by its strategic shift into Bitcoin mining announced last fall.
Before its pivot, Cango was primarily recognized as a Chinese automotive finance platform, offering consumer loans and managing online vehicle exports. The company went public in 2018.
Notably, Cango remains headquartered in China, a country with a complex stance on cryptocurrencies. Officially, Bitcoin mining was banned within China in mid-2021, prompting many miners to relocate to countries like Kazakhstan and North America as part of a strategic global distribution of mining operations.
Industry analysis by Galaxy Research highlights that governmental restrictions have reshaped the mining landscape, pushing hashrate to more favorable locations, marking a significant shift in global crypto mining distribution.
Magazine: China mocks US crypto policies and explores Telegram’s new dark markets: Asia Express.
