-
In November 2024, this company managed to extract 367 BTC of which it did not sell any.
-
Thanks to BTC, Cango obtained 10 times more revenue in November than in the entire third quarter.
Cango, a Chinese platform that offers automotive transaction services and is listed on the New York Stock Exchange, has decided to integrate Bitcoin (BTC) Mining into its business model.
And he did it in a big way. Mid-November 2024 launched a first investment of 256 million dollars in ASIC (application specific integrated circuit) equipment from the Bitmain company, acquiring 32 EH/s (exahashes per second) of computing power.
Given the processing power (hashrate) achieved by this company, it is already ranked as the third publicly traded company as an adult hashrate currently, according to the data of Hashrate Index.
Thus, Cango (CANG) was only behind Marathon Digital Holdings (MARA) and CleanSpark (CLSK), which currently own 48.00 EH/s and 33.7 EH/s of computational power, respectively. Riot Platforms (RIOT), according to its latest update, has a hashrate of 30.8 EH/s.
Cango would continue to increase its power hash in 2025
Cango plans to acquire 18 EH/s of hashrate additional through the issuance of $144 million in common shares. These extra hashes will be provided by ASIC equipment from Golden TechGen, a company owned by former Bitmain CFO Max Hua.
On December 5, 2024 Cango communicated that, With the 32 EH/s of power already deployed, it produced 367 BTC, of which it did not sell any. At the time of this article, that amount of bitcoin It is equivalent to more than 38 million dollars.
Founded in 2010 and headquartered in Shanghai, Cango reported revenue of nearly $4 million in the third quarter of 2024so the profits generated by Bitcoin mining in just the month of November were ten times higher than those quarterly income.
How did Cango shares react?
On the rise. This is how the shares of this company moved after the news of its insertion into the Bitcoin mining.
Currently, Cango shares are trading near $8. At the beginning of November 2024, its price was in the $3 area and by the middle of the month it had risen to almost $7.
Cango introduced BTC mining into its business model and its shares rose. Fountain: Google Finance.
This bullish rally represented an increase of almost 400%considering the market value that CANG had in the last six months.
Additionally, the market capitalization of this Chinese company is close to $600 million.
Cango’s entry into Bitcoin mining represents a significant diversification of its business model, leveraging Bitmain’s infrastructure and experience. However, the success of this initiative will depend on factors such as the evolution of the Cryptocurrency market, operational efficiency and management of associated costs.
Crypto Keynote USA
For the Latest Crypto News, Follow ©KeynoteUSA on Twitter Or Google News.
