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 bolstering its capacity in an increasingly competitive space.
According to Farside Investors, Cango mined 650.5 bitcoins (BTC) in July, up significantly from 450 BTC in June. Farside also said it has included Cango in its miner dashboard, removing Hut 8 due to a lack of monthly mining reports.
Source: Farside Investors
As Cointelegraph previously 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, worth approximately $512 million, placing the company among the top twenty holders of publicly traded Bitcoin. Industry data suggests that the company is closing in on the likes of GameStop and ProCap BTC.
The increase in mining volumes 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 broader $400 million investment strategy, marked Cango’s official pivot from auto finance to bitcoin mining.
The company’s shift in focus is part of a broader diversification strategy to take advantage of 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 Expected to Decline in August
Despite a recent share price decline and negative year-to-date results, Cango shares are up 158% over the past 12 months. The significant gains began last fall when the company announced plans to mine Bitcoin.
Cango’s share price has risen sharply since last fall. Source: Yahoo Finance
Before moving into 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 more strategic shift in miners’ mining operations.
Magazine: China criticizes US cryptocurrency policy, new shadow markets Telegram: Asia Express
Source: cryptonews.net
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