Cango Inc. acquires 32EH/s Bitcoin miners from Bitmain for $256 million

Cango Inc., a Shanghai-based automotive transaction service platform, announced that it had completed the $256M cash-settled acquisition of on-rack crypto mining machines with 32 EH/s of hashrate from Bitmain. The company had previously announced this acquisition on November 6, together with the proposed $144M share-settled acquisition of additional on-rack mining machines with 18 EH/s of hashrate from Golden TechGen.

Cango specifically bought the on-rack miners from Bitmain Technologies Georgia Limited and Bitmain Development Limited (together ‘Bitmain’), indicating that Bitmain could continue serving as Cango’s colocation provider.

The cash-settled transaction was concluded after the relevant closing conditions were satisfied. Closing of the share-settled transaction was subject to certain closing conditions that are yet to be satisfied.

Cango Inc. deploys its unspecified Bitcoin miners to produce 363.9 BTC  

Cango Inc., a Chinese auto services giant, leveled up from cars to crypto-mining dominance by spending $256 million for 32 EH/s of hashrate from Bitmain. Cango and Bitmain closed the cash-settled deal by assigning all the mining machines’ hash computing power to the company. The transfer of the machines’ legal title to the company is, however, expected to occur later, as agreed by both companies. 

The company dove head-first into Bitcoin mining to significant results in November after mining 363.9 BTC with the deployed miners. The production made Cango the third-largest publicly traded company by deployed hashrate and the fifth-largest by realized hashrate. The company averaged a production of 18.85 BTC per day and did not sell any of its Bitcoin produced in November, which left its total BTC holding at 363.9 BTC. Its deployed hashrate of 32 EH/s managed an average operating hashrate of 29.75 EH/s. 

Cango Inc. did not specify the model of the on-rack mining machines it got from Bitmain, although the unit cost of $8 per TH/s suggested that it may have acquired 50 EH/s of the Antminer S19XP series imported by Bitmain since 2023.

Blockspace Media confirmed the model of Cango’s initial fleet, citing a person close to the matter who mentioned that the miners consisted entirely of Antminer S19XPs.  

Cango Inc’s stock price skyrockets after the first month of BTC mining

Cango Inc. reported that this year’s Q3 revenue came in at $3.84 million as of November 30. The company’s Bitcoin mining revenue in November alone was already a few times higher than its revenue from quarter 2 of 2024. Its stocks also jumped from $3.41 in mid-November to $6.91 as of December 17, reaching a market cap of over $500M. The company’s hosting costs are yet to be revealed in the fourth quarter earnings report, but its total current assets as of September 30 was $564 million. 

Jiayuan Lin, Cango’s CEO, said the company’s overall business performance remained stable in the third quarter of 2024. He added that the solid results were mainly driven by the company’s strict cost control and risk management strategies, significantly improving its operational efficiency. Lin said the company reinforced monitoring mechanisms and risk assessments, effectively maintaining a low nonperformance loan ratio and ensuring asset quality and stability. 

Lin disclosed that Cango is focused on high-quality projects that complement the company’s core competencies. He added that the company aims to showcase its strength and vision on a broader stage. Lin said the company is keen on strengthening its data analysis capabilities to gain a more accurate understanding of its target markets and user demographics. According to the CEO, Cango will build on this foundation to achieve more balanced global growth.

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