Cango, a publicly traded Chinese conglomerate, has made a strategic decision to divest its traditional operations and fully embrace Bitcoin mining. This move comes as Cango sells its legacy auto financing business in China to Ursalpha Digital Limited for $352 million, aligning itself with the rapidly growing cryptocurrency sector.
According to a recent report by The Miner Mag, the transaction not only signifies a shift in Cango’s business model but also facilitates a significant transfer of mining capabilities, as Bitmain is reportedly transferring 32 exahashes per second (EH/s) to Cango. This effectively brings Bitmain’s mining operations to the public market, underscoring a trend of increasing institutional involvement in cryptocurrency mining.
Exahashes (EH/s) are a measure of a miner’s contribution to the Bitcoin network’s hashrate, a critical metric that reflects the total computing power securing the network. The decision by Cango to pivot towards Bitcoin mining showcases its commitment to harnessing the immense potential of digital currencies.
Interestingly, Ursalpha Digital Limited is linked to Antalpha, an entity ultimately governed by the chairman of Bitmain. This connection hints at an intricate web of corporate relationships that may shape the future of Bitcoin mining in China and beyond.
Cango’s shares have seen a 25% increase on the NYSE this month. Source: Google Finance
Exploring Corporate Connections and Market Implications
Bitmain has faced scrutiny in the United States, particularly after its AI affiliate was blacklisted. As reported by Bloomberg, Bitmain is also connected to American Bitcoin, a mining entity affiliated with the Trump family, which was established in collaboration with Hut 8. This partnership highlights the intersection of politics and cryptocurrency, adding a layer of complexity to the mining landscape.
In 2025, as Bitcoin mining stocks face pressure due to declining cryptocurrency prices and shifts in business models following the Bitcoin network’s April halving, the pivot by companies like Cango to mining illustrates a growing trend of adaptation in the cryptocurrency sector. The halving event, which reduced block rewards from 6.25 BTC to 3.125 BTC, has significant implications for mining profitability and strategy.
Cango’s transition marks a significant step towards embracing the future of finance, and it will be interesting to observe how these developments unfold in an ever-evolving market landscape.
