A Bitcoin Giant That No One Knows Its Name Emerged in China! They Started to Control a Significant Part of the Network

Bitcoin mining industry, a Shanghai-based automotive lending company, in late 2024. Cango’nun (CANG) It experienced great turmoil with its unexpected entrance.

Cango, valued at $363 million, is on track to become one of the world’s largest Bitcoin miners by gaining 50 exahashes per second (EH/s) of computing power, approximately 6% of Bitcoin’s total hashrate.

Cango’s move towards BTC mining surprised many in the industry. “I guess it was surprising to people in the Bitcoin mining industry because no one had ever heard of Cango before,” said Juliet Ye, the company’s senior communications manager. But Cango has a track record of adapting to market opportunities. Since its founding in 2010, the company has focused on automobile exports, electric vehicle investments, renewable energy and now BTC mining.

Cango’s ambitious mining plans required significant investments. The company spent $256 million in cash to purchase 32 EH/s of mining power from leading Bitcoin mining hardware manufacturer Bitmain. To acquire the remaining 18 EH/s, Cango is issuing $144 million worth of shares to Golden TechGen, owned by former Bitmain CFO Max Hua, and other sellers. When these transactions are completed, Golden TechGen and others will own 37.8% of Cango.

This huge acquisition places Cango among the giants of the industry. Its 50 EH/s fleet surpasses the 47 EH/s owned by MARA Holdings, currently the largest publicly traded Bitcoin miner, and dwarfs rivals such as CleanSpark (32 EH/s) and Riot Platforms (26 EH/s) leaving.

Currently, Cango uses Bitmain’s infrastructure to operate mining machines spread across the US, Canada, Paraguay and Ethiopia. While the company plans to build in-house expertise over time to improve efficiency, it is taking a cautious approach when navigating the complexities of the industry.

Cango is also exploring how to manage its growing BTC reserves. In November alone, the company generated 363.9 BTC, worth approximately $35 million at current prices. “We are not ruling out the possibility of making some tactical reductions in our BTC holdings depending on market conditions,” Ye said.

*This is not investment advice.