TLDR
Cango sold 4,451 BTC, reducing Bitcoin reserves by 60% to repay a Bitcoin-collateralized loan.
The company raised $305M, improving its financial leverage and balance sheet.
Cango aims to pivot towards AI compute infrastructure, targeting small and medium enterprises.
Jack Jin, former Zoom Communications leader, appointed CTO of Cango’s AI business line.
Bitcoin’s price dropped 1.06%, while Cango saw a 3.26% after-hours rebound to $0.9500.
Cango, a Bitcoin mining company, has sold 4,451 BTC for approximately $305 million, reducing its Bitcoin reserves by 60%. The sale aims to repay a Bitcoin-collateralized loan amid recent market volatility.
Bitcoin Sale Reduces Cango’s Reserves and Strengthens Balance Sheet
The sale of 4,451 BTC represents a substantial reduction in Cango’s digital asset holdings. This move is part of a broader strategy to strengthen the company’s balance sheet and reduce financial leverage.
The $305 million raised from the sale was directly applied to partially repay a Bitcoin-backed loan, improving Cango’s financial position. The divestment comes at a time when Bitcoin prices have rebounded from a recent low.
By selling a portion of its reserves, Cango aims to maintain flexibility while funding strategic growth initiatives, including expansion into AI compute infrastructure.
Cango Shifts Focus to AI Compute Infrastructure
In addition to the sale, Cango is pivoting toward AI computing by leveraging its existing infrastructure. The company plans to offer distributed compute capacity for the AI industry, targeting small and medium-sized enterprises.
Cango’s modular approach promises faster deployment timelines compared to traditional data center models. Cango also appointed Jack Jin as CTO of its AI business line.
Jin, a former leader at Zoom Communications, brings expertise in AI/ML infrastructure and large-scale GPU systems. His experience aligns with Cango’s strategy to develop a global distributed inference platform using modular, containerized GPU compute nodes.
Bitcoin Dips 1.06% While Cango Inc. Sees After-Hours Rebound
At the time of press, CoinMarketCap data indicates that Bitcoin’s price is currently $69,983.52, down 1.06% in the last 24 hours. The price fluctuated between $69,730 and $71,000 during the day.
On the other side, Cango Inc. (CANG) closed at $0.9200, down 5.52% on the day. The stock fluctuated between $0.8840 and $0.9887. After hours, the price rose by 3.26%, reaching $0.9500.
The stock had a previous close of $0.9738. Trading volume reached 1,229,780 shares, with an average volume of 985,054. The 52-week range for Cango is between $0.8840 and $2.8750, with a market cap of $318.642 million.
