Cango, a Chinese automotive company listed on the NYSE, acquires mining power equivalent to 4% of the Bitcoin network, challenging industry giants.
A Chinese automotive services company is emerging as one of the largest Bitcoin miners in the world. Cango Inc., listed on the New York Stock Exchange, made a strategic acquisition that propels it to third place in global hashrate.
According to a press release from November 15, the company acquired 32 EH/s worth of ASIC Antminers from Bitmain, representing about 4% of the total Bitcoin network hashrate, for $256 million.
Additionally, Cango plans to acquire another 18 EH/s from Golden TechGen, a company controlled by former Bitmain CFO Max Hua, bringing its total capacity to 50 EH/s, aligning it with mining company Marathon Digital Holdings. The deal, which will be financed through the issuance of $144 million in common stock, is expected to close by March 31, 2025.
The initial purchase, made entirely from Antminer S19 XP models, is currently hosted in Bitmain-managed facilities in the U.S., with a significant presence in Georgia. In November, Cango mined 363.9 BTC, worth approximately $38.76 million at the current value.
The deal stipulates that the ASICs will be hosted in Bitmain’s facilities for 18 months, with an option for the facility owners to purchase them.
Following the transaction, Cango’s stock, with a market capitalization of nearly $600 million, saw a 75% increase in the past week and a 692% rise since the beginning of the year.
