Bitcoin miner Cango (CANG) accomplished sale 4,451 $BTC over the weekend, elevating roughly $305 million in USDT because it seems to cut back leverage and reposition its enterprise round AI infrastructure.
The corporate stated it raised $305 million from the sale, suggesting a mean promoting value of about $68,524 per coin, or not far above multi-year low costs for bitcoin.
The inventory was little modified in buying and selling on Monday, however fell 83% yr over yr.
The corporate’s bitcoin gross sales have been “primarily based on an intensive evaluation of present market circumstances,” the corporate stated, because it plans to maneuver to AI computing infrastructure. Cango plans to deploy modular GPU items throughout its world community of greater than 40 websites to serve small and medium-sized companies that want on-demand AI inference functionality, it stated.
The corporate used the earnings from its $BTC sale to repay a mortgage secured with bitcoins, strengthening its steadiness sheet. The corporate nonetheless owns 3,645 $BTC with a worth of greater than 250 million {dollars}, in line with knowledge from BitcoinTreasuries.
“In response to latest market circumstances, we’ve made a treasury adjustment to strengthen the steadiness sheet and scale back monetary leverage, offering higher capability to fund our strategic growth in AI computing infrastructure,” the corporate wrote in a letter to shareholders.
Its entry into the AI sector comes because it faces what it framed as a spot between rising computing demand and current community capability. Cango wrote that it’s nicely positioned to reap the benefits of that hole.
Cango isn’t alone. A rising group of bitcoin miners are lowering their publicity to pure mining and redirecting capital and infrastructure towards high-performance computing and synthetic intelligence knowledge facilities.
Bitfarms (BITF) has stated it plans to utterly exit cryptocurrency mining round 2027, and declared that it’s not a bitcoin firm because it strikes into high-performance computing and synthetic intelligence workloads.
KBW analysts have warned that the trade’s pivot to AI workloads is compelling, however that the trail to monetization is fraught with execution dangers. That led to a downgrade not solely in Bitfarms but additionally in Bitdeer (BTDR) and Hive Digital (HIVE).
