Cango Sells Auto Financing Business for $352M to Focus on Bitcoin Mining

Cango, a publicly traded Chinese conglomerate, has agreed to sell its legacy China operations to an entity associated with peer Bitmain in a bid to go all-in on Bitcoin (BTC) mining. The deal involves Cango selling its legacy Chinese auto financing business to Ursalpha Digital Limited for $352 million. Additionally, Bitmain is reportedly transferring 32 exahashes per second (EH/s) to Cango, effectively bringing Bitmain’s mining assets to the public market. Exahashes measure a miner’s contribution to the Bitcoin network’s hashrate, the total computing power securing the network. Ursalpha Digital Limited shares the same corporate address and founding director as Antalpha, an entity ultimately controlled by the chairman of Bitcoin miner Bitmain.

This strategic move by Cango signifies a shift in focus towards the burgeoning Bitcoin mining industry. By divesting its traditional auto financing business, Cango aims to capitalize on the growing demand for Bitcoin mining operations. The transfer of 32 EH/s from Bitmain to Cango underscores the significant hashrate contribution that Cango will bring to the Bitcoin network, enhancing its role as a major player in the mining sector. This deal not only allows Cango to leverage Bitmain’s extensive mining infrastructure but also positions it to benefit from the increasing value and relevance of Bitcoin mining in the global cryptocurrency landscape.

Bitmain, a prominent player in the Bitcoin mining industry, has faced scrutiny in the United States. The country blacklisted its artificial intelligence affiliate Sopghgo. Bitmain has a working relationship with American Bitcoin, a mining entity created in March as part of a deal with Hut 8, a provider of power and computing infrastructure. On March 31, Hut 8 bought a majority ownership interest in American Bitcoin, whose founders include the sons of former US President Donald Trump, Donald Trump Jr. and Eric Trump. Hut 8 has transferred its Bitcoin mining equipment to American Bitcoin, which is reportedly considering an initial public offering (IPO). The companies stated that American Bitcoin will focus on crypto mining, while Hut 8 will target data center infrastructure for applications such as high-performance computing.

This strategic partnership between Cango and Bitmain highlights the growing trend of traditional companies pivoting towards the cryptocurrency sector. By selling its legacy business and acquiring significant mining assets, Cango is positioning itself to take advantage of the potential growth in the Bitcoin mining industry. The transfer of 32 EH/s from Bitmain to Cango not only enhances Cango’s mining capabilities but also brings Bitmain’s mining assets to the public market, potentially attracting more investors to the cryptocurrency mining sector. This move by Cango reflects the broader shift in the business landscape, where companies are increasingly looking to diversify their portfolios and capitalize on emerging technologies and industries.