Three months after selling its automotive financing units with a focus on Bitcoin mining, Chinese conglomerate CANGO (CANG) has significantly increased its crypto production, indicating that the acquisition of Bitmain mining rigs is increasing its capabilities as it strengthens industry competition.
According to data from Farside Investors, Cango produced 650.5 Bitcoin (BTC) in July, a sharp increase from 450 BTC in June. Farside also said it added Cango to its minor dashboard, removing shed 8 due to lack of monthly production disclosures.
sauce: Farside Investor
As reported by the Cointelegraph, Cango mined a total of 954.5 BTC in April and May. This is the first two months after the full transition to Bitcoin mining.
Cango currently holds 4,529.7 BTC worth approximately $512 million, located in the top 20 publicly traded Bitcoin holders. Industry data shows that companies are approaching ranks such as GameStop and Procap BTC.
The surge in production follows a $256 million purchase of mining rigs from Cango’s Bitmain, securing a hashrate per 32 seconds (eh/s). The deal was announced last November as part of a $400 million investment strategy, marking the official pivot from Cango’s car financing to Bitcoin mining.
The company’s shift was part of a broader diversification strategy aimed at harnessing the growth of its digital assets. Cango said it has leveraged its existing infrastructure and experience in digital asset management to drive pivots to Bitcoin mining.
Related: The difficulty of Bitcoin mining hits ATH, but is predicted to drop in August
Cango’s Pivot brings China into the crypto spotlight
Despite recent stock prices and negative performance in the year, Cango shares have risen 158% over the past 12 months. Much of that momentum began last fall when the company announced a push to Bitcoin mining.
Cango’s stock price has been rising sharply since last fall. sauce: Yahoo Finance
Before encryption, CANGO was primarily known as China’s car financing platform, offering consumer loans and promoting the export of online vehicles. The company was released in 2018.
In particular, CANGO is headquartered in China, a country with a complex and often restrictive attitude towards cryptocurrencies. Bitcoin mining was effectively banned in China in mid-2021.
As reported by Galaxy Research at the time, government restrictions on the mainland drove hashrates in neighbouring countries like Kazakhstan and North America as part of a more strategic change in mining production.
magazine: China laughs Crypto Policies, Telegram’s new Dark Markets: Asia Express