Bitcoin miner Cango (CANG) accomplished the sale 4,451 $BTC over the weekend, elevating roughly $305 million in USDT because it seems to scale back leverage and reposition its enterprise round synthetic intelligence infrastructure.
The corporate mentioned it raised $305 million from the sale, suggesting a mean sale value of about $68,524 per coin, or not far above multi-year low costs for bitcoin.
Shares are little-changed in Monday buying and selling, however are decrease by 83% on a year-over-year foundation.
The corporate’s bitcoin gross sales had been “based mostly on a complete evaluation of present market circumstances,” the agency mentioned, because it plans to shift into AI computing infrastructure. Cango plans to deploy modular GPU models throughout its world community of over 40 websites to serve small and mid-sized companies needing on-demand AI inference capability, it mentioned.
The corporate used the proceeds of its $BTC sale to pay down a bitcoin-collateralized mortgage, bolstering its stability sheet. The corporate nonetheless holds 3,645 $BTC price greater than $250 million, in keeping with information from BitcoinTreasuries.
“In response to current market circumstances, we’ve made a treasury adjustment to strengthen stability sheet and scale back monetary leverage, which gives elevated capability to fund our strategic growth into AI compute infrastructure,” the corporate wrote in a letter to shareholders.
Its transfer into the AI sector comes because it faces what it framed as a spot between rising compute demand and present grid capability. Cango wrote that it’s nicely positioned to reap the benefits of that hole.
Cango is just not alone. A rising group of bitcoin miners is scaling again publicity to pure mining and redirecting capital and infrastructure towards AI information facilities and high-performance computing.
Bitfarms (BITF) has mentioned it plans to exit crypto mining totally by round 2027, and famously declared it’s not a bitcoin firm because it shifts to high-performance computing and AI workloads.
Analysts at KBW have warned that the business’s pivot towards AI workloads is compelling, however that the trail to monetization is fraught with execution dangers. That led to a downgrade not solely on Bitfarms but in addition in Bitdeer (BTDR) and Hive Digital (HIVE).
