Public Bitcoin mining firm Cango has sold 4,451 Bitcoin, worth approximately $305 million, to repay a Bitcoin-backed loan. The company stated the move is part of a strategic pivot to expand its business into providing compute capacity for artificial intelligence. Despite this shift, Cango says it remains committed to its Bitcoin mining operations while seeking to balance its asset allocation for long-term growth.
Publicly traded Bitcoin miner Cango sold 4,451 BTC this weekend, raising approximately $305 million. The firm used all proceeds to repay a portion of a Bitcoin-collateralized loan.
The company announced it is executing a strategic pivot by utilizing its infrastructure to provide distributed compute capacity for the AI industry. Cango also appointed Jack Jin, formerly of Zoom, as its new Chief Technology Officer to help build the AI business line.
Shares in the Dallas-based mining firm are down nearly 3% following the news. The stock has fallen 62% over the last six months.
While some miners have signaled a complete departure from mining, Cango intends to continue mining Bitcoin alongside its AI compute business. “Cango remains committed to its mining operations, with a continued focus on enhancing mining economics and seeking an optimal balance between hashrate scale and operational efficiency,” the firm stated.
The firm operates over 40 sites across four geographic regions and mined nearly 500 BTC in January, according to its most recent monthly production update. It sold 550 BTC, worth about $39 million, during that same month.
At the time of the January sale, CEO Paul Yu indicated the firm would be selling more Bitcoin in the future. “Starting this month, we will selectively sell a portion of newly mined Bitcoin to support the expansion of our inference platform and other near-term growth initiatives,” said Yu.
