Imagine waking up one morning to find out your favorite car financing company has ditched its wheels for Bitcoin mining. Cango just did it.
This Chinese conglomerate has just sold its auto financing business in China for a cool $352 million to Ursalpha Digital Limited, an entity with ties to Bitmain, the king of mining chips.
Mining capacity
Bitmain is transferring 32 exahashes per second of mining capacity to Cango. For those who don’t speak crypto mining, that’s a lot of computing power. It’s like going from a small engine to a rocket ship overnight.
And if you thought that was all, Cango is also acquiring another 18 EH/s from Golden TechGen, bringing its total capacity to about 50 EH/s.
That’s some serious crypto muscle. One deal is experimenting. Two is a new business plan.
Restructuring
Now, you might wonder why Cango would abandon its successful auto financing business, and the truth is, the auto market has been a bit of a speed bump lately, so the keyword here is the ’successful’.
Remember when China’s strict Covid controls brought the car market to a near standstill? That was tough on Cango. But Bitcoin mining?
That’s a whole different story. It’s like going from a slow lane to the fast track.
And let’s not forget the interesting connections here. Bitmain has ties to American Bitcoin, which is linked to the Trump family.
The sons of Donald Trump, Donald Jr. and Eric, are involved with American Bitcoin, thanks to a deal with Hut 8. It’s like a game of six degrees of separation, but with Bitcoin.
New race
Cango’s mining operations are already showing some quite impressive results. In March, they mined 530.1 bitcoins, up from 472.7 in February.
That’s a nice bump, but let’s be real, Bitcoin mining is a pretty competetive industry. It’s like playing a high-stakes game of poker, sometimes you win big, and sometimes you don’t.
What’s next for Cango? Will they strike crypto gold or crash and burn? This is now like a movie where the hero trades in their trusty car for a Bitcoin mining rig and literally embarks on a journey into the unknown.
Have you read it yet? Tokenized gold is shaking up finance?
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