Chinese company Cango has significantly ramped up its Bitcoin production after divesting from auto financing to focus on cryptocurrency mining.
Rise in Bitcoin Production
In July 2023, Cango produced 650.5 Bitcoin, a significant increase from 450 BTC in June. This information was presented by analysts from Farside Investors, who also added Cango to their mining dashboard.
Cango's Strategy and Investments
Cango invested $256 million in acquiring mining rigs from Bitmain, securing 32 EH/s of hashrate. This deal was part of a broader $400 million investment strategy and marked the company’s official pivot to Bitcoin mining, which began last November. Currently, Cango holds 4,529.7 BTC, worth approximately $512 million.
Complex Situation of Cryptocurrencies in China
Despite current successes, Cango remains in a country with a complex stance toward cryptocurrencies, as Bitcoin mining was effectively banned in China in mid-2021. Previously, the company was known as an automotive financing platform, starting its operations in 2018.
Thus, Cango's pivot to Bitcoin mining demonstrates how companies can adapt to the changing cryptocurrency landscape, even amid strict regulation in the country.
