Company shifts focus to Bitcoin mining after selling car loan division

Cango Inc., a Chinese company previously focused on car loan financing, recently announced a substantial shift in its business operations towards Bitcoin mining. The company disclosed the sale of its car financing business in mainland China to Ursalpha Digital Limited for a substantial sum of $351.94 million, with an initial payment of $210.64 million.

This strategic move signifies Cango’s transition to becoming a major player in the Bitcoin mining sector. The company kickstarted its foray into Bitcoin mining in November 2024 by partnering with Bitmain to acquire mining machines with a combined hashrate of 32EH for $256 million. Additionally, Cango procured an extra 18EH from Golden TechGen Limited in exchange for 145.7 million Class A shares valued at $144 million, bringing its total purchase to 50EH. Since the inception of its mining operations, Cango has managed to amass 2,474 Bitcoins with an approximate value of $204 million.

Cango’s Bitcoin mining infrastructure is distributed across five sites globally, located in diverse regions such as Oman, East Africa, Paraguay, Canada, and the US. Despite Cango’s ambitious plans, its recent divestment of the car financing business could potentially impact its mining ventures. The sale could influence a key agreement involving the procurement of 18EH of mining power in exchange for company shares, leading Cango to reexamine its prior purchase agreement with Golden TechGen Limited. Currently, Cango has only deployed 32EH of its total mining power, indicating that the finalization of the additional 18EH acquisition is pending.

The phenomenon of companies pivoting towards digital infrastructure is not unique to Cango. HRC World, previously known for managing the Hard Rock Cafe chain in China, recently diversified into café management services before venturing into data centers. Similarly, Jet.AI, a firm specializing in AI solutions for the aviation industry, transitioned from aviation to data center development by divesting its aviation business.

These transformations underscore a broader trend where companies across various industries are embracing digital technologies and data-centric operations. As the global business landscape continues to evolve, firms are recalibrating their strategies to align with emerging technological trends and capitalize on the growing demand for digital services.

In light of Cango’s bold shift towards Bitcoin mining and the broader trend of business transformation towards digital infrastructure, it is evident that companies are adapting to the dynamic market landscape to secure a competitive edge and drive innovation in emerging sectors. With a steadfast commitment to technological evolution, organizations are poised to navigate the ever-changing business environment and unlock new opportunities for growth and success in the digital era.