Cango's Bitcoin Mining News: How a Chinese Auto Lender Became a Crypto Mining Giant

The bitcoin mining industry experienced a significant shift in late 2024 with an unexpected entrant: Cango (CANG), a Shanghai-based automotive transaction platform, announced its aggressive move into crypto mining news that caught many industry observers off guard. This new mining venture represents a strategic pivot for the company as it deploys nearly half a billion dollars to establish itself as one of the world’s largest digital asset miners.

The $400 Million Mining Power Acquisition

Cango’s entry into mining news began with a substantial investment: the company allocated $400 million to acquire 50 exahashes per second (EH/s) of computing power—a metric that measures the processing capacity required for cryptocurrency validation. Breaking down the deal, Cango paid $256 million in cash to Bitmain, the world’s leading manufacturer of mining equipment, for 32 EH/s of capacity. The remaining 18 EH/s came through a share issuance valued at $144 million, with Golden TechGen (owned by former Bitmain CFO Max Hua) and other undisclosed sellers acquiring approximately 37.8% ownership stake in Cango.

“Nobody in the mining space had heard of Cango before,” acknowledged Juliet Ye, the company’s senior director of communications, in an interview. “But our corporate history demonstrates continuous adaptation and diversification.” Since its establishment in 2010, Cango has repeatedly reinvented its business model to capture emerging opportunities.

From Auto Lending to Diversified Energy Operations

Cango’s trajectory reveals a pattern of strategic evolution across multiple sectors. The company began as a financing facilitator for Chinese automobile purchases, then expanded into car export facilitation and invested in Li Auto, an electric vehicle manufacturer. This mining news announcement represents the latest chapter in a diversification strategy that previously included renewable energy exploration and high-compute projects related to artificial intelligence.

According to Cango’s management team, the decision to enter mining operations aligned with broader industry consolidation trends. “The Bitcoin mining sector’s imperative for scaled operations was a pivotal consideration,” they explained. The company recognized that escalating mining difficulty and the necessity for state-of-the-art hardware increasingly favored large-scale players capable of significant capital deployment.

The market has rewarded this strategic direction generously. Cango’s stock price surged from approximately $1.10 at the start of 2024 to $4.56 by year-end, representing a gain exceeding 362%. This performance dramatically elevated the company’s visibility in global markets. “For years, gaining traction around Cango as a small- to mid-cap Chinese firm proved challenging,” Ye noted. “Suddenly, the mining news surrounding our company transformed market perception entirely.”

Mining’s New Major Player: 50 EH/s Computing Power

Once Cango’s complete 50 EH/s fleet becomes fully operational, the company will control roughly 6% of Bitcoin’s total computing power—a commanding position in the mining landscape. With the network’s overall hashrate hovering around 823 EH/s as of late 2024, this concentration places Cango among the industry’s most influential participants.

The comparison with established competitors illustrates Cango’s sudden prominence. MARA Holdings, the world’s largest publicly traded miner, operated approximately 47 EH/s, while CleanSpark (CLSK) and Riot Platforms (RIOT) held 32 EH/s and 26 EH/s respectively. Cango’s mining power acquisition leapfrogged the company into the upper echelon, positioning it between RIOT and MARA in terms of hashrate concentration.

Why Cango Relies on Bitmain for Mining Operations

Despite acquiring massive computing capacity, Cango currently outsources mining operations rather than managing equipment independently. With mining rigs distributed globally—including sites in the United States, Canada, Paraguay, and Ethiopia—the company maintains substantial operational reliance on Bitmain for facility management, infrastructure, and site optimization.

This dependency reflects practical considerations. “Although we entered with significant computing power, we remain newcomers requiring time to adapt to industry norms and understand varied tax environments,” Ye explained. “Initially, partnering with Bitmain’s operational expertise provided an efficient pathway.” The arrangement grants Cango access to Bitmain’s worldwide infrastructure network and experienced technical teams while the company develops internal mining capabilities.

This outsourced model carries long-term implications. As Cango accumulates sector experience and seeks enhanced economic efficiency, building an in-house technical team could reduce operational costs substantially compared to ongoing Bitmain service dependencies.

Bitcoin Accumulation Strategy and Market Outlook

Cango’s future bitcoin holdings strategy remains adaptable based on evolving market conditions. The company demonstrated immediate mining success, generating 363.9 BTC during November alone—equivalent to approximately $35 million at historical pricing levels. Current BTC valuation stands at $67.97K, reflecting market dynamics as of February 2026.

Management indicated willingness to execute “tactical reductions” to bitcoin reserves should market conditions warrant strategic profit-taking. This approach provides flexibility to optimize returns while maintaining core mining operations focused on long-term value accumulation.

The mining news surrounding Cango exemplifies broader industry dynamics characterized by consolidation, substantial capital requirements, and the emergence of unconventional participants with significant financial resources. Whether Cango sustains its mining dominance and transitions to independent operations remains a key story for industry observers tracking this newcomer’s evolution within the competitive mining landscape.