Bitcoin miner Cango (CANG) completes sale of 4,451 $BTC The company raised about $305 million in USDT over the weekend as it looks to reduce leverage and reposition its business around artificial intelligence infrastructure.
The company announced that it raised $305 million from the sale, implying an average sale price of around $68,524 per coin, which is not much higher than Bitcoin’s multi-year lows.
The stock was little changed in Monday trading, but is down 83% from a year ago.
The company said its Bitcoin sales are “based on a comprehensive assessment of current market conditions” as the company plans to transition to AI computing infrastructure. Cango plans to deploy modular GPU units across its global network of more than 40 locations to serve small and medium-sized businesses that require on-demand AI inference capabilities, the company said.
The company used its proceeds $BTC It strengthened its balance sheet by selling it to pay off a Bitcoin-backed loan. The company still has 3,645 people $BTC According to data from BitcoinTreasuries, it is worth more than $250 million.
“In response to recent market conditions, we made financial adjustments to strengthen our balance sheet and reduce our financial leverage, which will improve our ability to fund our strategic expansion into AI computing infrastructure,” the company said in a letter to shareholders.
The company’s move into the AI space comes as it faces what it describes as a gap between growing computing demands and existing grid capacity. Cango wrote that it is well positioned to take advantage of that gap.
Kango is not alone. A growing group of Bitcoin miners are scaling back their exposure to pure mining and redirecting capital and infrastructure to AI data centers and high-performance computing.
BitFarms (BITF) famously declared that it was no longer a Bitcoin company, saying it planned to completely exit crypto mining by around 2027, as it transitioned to high-performance computing and AI workloads.
Analysts at KBW warn that while the industry’s pivot to AI workloads is attractive, the path to monetization comes with execution risks. This led to downgrades not only of Bitfarms but also of Bitdeer (BTDR) and Hive Digital (HIVE).
