kango, Chinese car loan platform rocked, Bitcoin mining market by investing $400 million to obtain 50 kHz/s of power. This step placed it among the leading global companies in this sector.
Let’s see all the details in this article.
Kangoo and its move into Bitcoin mining: a new era for the Chinese company
As expected, Cango, which was initially known as a financial services platform for the Chinese automotive market, has made an exciting foray into the Bitcoin mining sector.
With an investment of 400 million dollars Capturing 50 exahashes per second (EH/s) of computing power, Cango quickly transformed into one of the largest Bitcoin mining companies in the world.
Founded in 2010 and headquartered in Shanghai, the company was primarily known for its auto loan support.
However, diversification has always been a strength for Cango, which over time has explored sectors such as exporting cars, electric vehicles and renewable energy.
In November 2024, Kangoo decided to go ahead with the purchase 50 EH/s of mining powerwhich is a large size considering that it represents about 6% of the total global Bitcoin hash rate.
This puts it in competition with industry giants such as… Mara Holdings and CleanSpark. Cango chose a strategic approach to acquire its mining fleet.
In fact, it spent $256 million in cash to buy 32 exah/second of computing power from Bitmain, a leading mining hardware manufacturer.
The remaining 18 EH/s were acquired through a combination of equity issues and partnerships with The golden generation of technology and other undisclosed providers.
This strategy has made Golden TechGen and other vendors significant shareholders in Cango, owning about 37.8% of the company.
Despite the high cost of the operation, the move brought an immediate return: Cango shares rose by 362% In 2024, a success that put the company under the international spotlight.
The role of Bitmain and decentralized operations
Currently, Kangoo relies on Bitmain For the operational management of its mining fleet, which is distributed across different regions of the world, including the United States, Canada, Paraguay and Ethiopia.
This initial dependency reflects the company’s cautious approach, which favors collaborating with an industry expert while recognizing an emerging market.
according to Juliet YeeSenior Director of Communications at Cango, the company plans to develop an internal team to improve operations in the long term, thus reducing costs and increasing economic efficiency.
One of the most interesting aspects of Bitcoin mining is its ability to interact with power grids. Miners can turn their machines on and off based on local power demand, helping to balance networks efficiently.
In some jurisdictions, such as Texas, miners are incentivized to work during periods of low energy consumption and to shut down machinery during peak demand.
Kango recognized the potential of this model, and explored ways to integrate Bitcoin mining with it Renewable energy projects And high computer power systems, Including those related to artificial intelligence.
Challenges and opportunities for the future between fluctuations and regulations
Despite her triumphant entry, Kanjo faces major challenges. The volatile nature of the cryptocurrency market, combined with the international market Organizational complexitiesrepresents an obstacle for the company.
Furthermore, decentralized management of the bull mining fleet can raise logistical and financial problems.
However, the opportunities outweigh the risks. With the global hash rate constantly increasing, Cango’s position as one of the leading computing power providers places it in a strategic role in the Bitcoin ecosystem.
It is no coincidence that Cango has already begun to see the fruits of its investments. In November 2024, the company mined 363.9 bitcoins worth about $35 million.
While looking to the future, Cango does not rule out the possibility of selling part of his Bitcoin holdings to fund it Additional investments Or continue to diversify its investment portfolio.