Cango, a publicly traded Chinese conglomerate, has made a significant strategic shift by agreeing to sell its legacy China operations to an entity linked with Bitmain, aiming to fully invest in Bitcoin mining. This decision comes as part of a $352 million deal with Ursalpha Digital Limited, which will take over Cango's auto financing business.
In addition to the sale, Bitmain is reportedly transferring 32 exahashes per second (EH/s) to Cango, effectively bringing Bitmain’s mining assets to the public market. Exahashes are critical as they measure a miner’s contribution to the Bitcoin network’s hashrate, which secures the network.
Interestingly, Ursalpha Digital Limited shares the same corporate address and founding director as Antalpha, an entity controlled by the chairman of Bitmain. This connection raises questions about the future dynamics of the Bitcoin mining industry.
The report also highlights Bitmain's recent challenges, including scrutiny from the US after its AI affiliate, Sopghgo, was blacklisted. Furthermore, Bitmain has formed a working relationship with American Bitcoin, a mining entity affiliated with the Trump family, which focuses on crypto mining while Hut 8 targets high-performance computing infrastructures.
As Bitcoin mining stocks face struggles due to declining cryptocurrency prices and business model pressures from the April halving, where mining rewards were reduced from 6.25 BTC to 3.125 BTC per block, Cango's pivot may position it strategically in a volatile market.
Comments
Join Our Community
Sign up to share your thoughts, engage with others, and become part of our growing community.
No comments yet
Be the first to share your thoughts and start the conversation!