Bitcoin miner Cango (CANG) completed the sale of 4,451 BTC over the weekend, raising around $305 million in USDT, as it looks to reduce leverage and reposition its business around artificial intelligence infrastructure.
The company said it raised $305 million from the sale, suggesting an average sale price of about $68,524 per coin, or not far above multi-year lows for bitcoin.
Shares are little changed in Monday trading, but are down 83% year-on-year.
The company’s bitcoin sale was “based on a comprehensive assessment of current market conditions,” the firm said, as it plans to shift to AI computing infrastructure. Cango plans to deploy modular GPU units across its global network of over 40 locations to serve small and medium-sized businesses that need on-demand AI inference capabilities, it said.
The company used the proceeds from its BTC sale to pay off a bitcoin-backed loan, strengthening its balance sheet. The company still has 3,645 BTC worth more than $250 million, according to data from BitcoinTreasures.
“In response to recent market conditions, we have made a financial adjustment to strengthen the balance sheet and reduce financial leverage, providing increased capacity to fund our strategic expansion in AI computing infrastructure,” the company wrote in a letter to shareholders.
Its move into the AI sector comes as it faces what it framed as a gap between rising computing demand and existing network capacity. Cango wrote that it is well positioned to exploit that gap.
Cango is not alone. A growing group of bitcoin miners are scaling down exposure to pure mining and redirecting capital and infrastructure toward AI data centers and high-performance computing.
Bitfarms (BITF) has said it plans to exit cryptomining entirely around 2027, famously declaring it is no longer a bitcoin company as it shifts to high-performance computing and AI workloads.
Analysts at KBW have warned that the industry’s pivot toward 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 in Bitdeer (BTDR) and Hive Digital (HIVE).
