Cango sells $305M in Bitcoin to reduce loan risk and accelerate its pivot into AI infrastructure while keeping its mining business running.
Summary
Publicly traded Bitcoin miner Cango Inc. sold 4,451 Bitcoin over the weekend, using the proceeds to repay a Bitcoin-backed loan and support its expansion into artificial intelligence computing services, the company announced.
The Dallas-based company stated the sale was part of a balance sheet restructuring as it reallocates capital toward providing distributed compute power for AI workloads. The transaction reduced leverage tied to Bitcoin collateral while freeing capacity for new infrastructure investment, according to the company.
Cango shares declined in trading following the disclosure. The stock has fallen over the past six months amid earnings pressure across the mining sector and uncertainty around strategic shifts toward AI, market data showed.
The company said it plans to continue Bitcoin mining alongside its AI business rather than fully exiting the sector.
Several competitors have moved away from mining as margins tightened and energy costs rose, with some rebranding as infrastructure or compute providers focused on AI demand. Cango also announced the appointment of a new chief technology officer with experience in enterprise software.
The company operates more than 40 sites across four geographic regions, providing access to grid-connected infrastructure that can be repurposed for high-performance computing, according to company statements.
In January, Cango mined nearly 500 Bitcoin and sold approximately 550 Bitcoin, according to its latest production update. The company ended the month holding more than 7,400 Bitcoin.
Cango indicated it may continue selectively selling newly mined Bitcoin to fund near-term growth initiatives tied to AI while managing liquidity and operating risk, the company stated.
