Bitcoin miner Cango (CANG) completed the sale of 4,451 BTC over the weekend, raising approximately $305 million in USDT as it looks to reduce leverage and reposition its business around AI infrastructure.
The company said it raised $305 million from the sale, suggesting an average selling price of about $68,524 per coin, or not far above multi-year low prices for bitcoin.
The stock was little changed in trading on Monday, but fell 83% year over year.
The company’s bitcoin sales were “based on a thorough assessment of current market conditions,” the company said, as it plans to move to AI computing infrastructure. Cango plans to deploy modular GPU units across its global network of more than 40 sites to serve small and medium-sized businesses that need on-demand AI inference capability, it said.
The company used the proceeds from its BTC sale to repay a loan secured by bitcoins, bolstering its balance sheet. The company still holds 3,645 BTC worth more than $250 million, according to data from BitcoinTreasuries.
“In response to recent market conditions, we have made a treasury adjustment to strengthen the balance sheet and reduce financial leverage, providing greater ability to fund our strategic expansion in AI computing infrastructure,” the company wrote in a letter to shareholders.
Its entry into the AI sector comes as it faces what it framed as a gap between growing computing demand and existing network capacity. Cango wrote that it is well positioned to take advantage of that gap.
Cango is not alone. A growing group of bitcoin miners are reducing their exposure to pure mining and redirecting capital and infrastructure toward high-performance computing and artificial intelligence data centers.
Bitfarms (BITF) has said it plans to completely exit cryptocurrency mining around 2027, and declared that it is no longer a bitcoin company as it moves into high-performance computing and artificial intelligence workloads.
KBW analysts have warned that the industry’s pivot to AI workloads is compelling, but that the path to monetization is fraught with execution risks. That led to a downgrade not only in Bitfarms but also Bitdeer (BTDR) and Hive Digital (HIVE).
