Bitcoin Miner Cango Sells $305M in BTC to Fund AI Compute Push
- Cango sold 4,451 BTC for $305 million to repay debt, leaving it with 7,474 BTC in reserve as the stock continues to trade below $1.00.
- The company appointed former Zoom executive Jack Jin as CTO to lead its pivot into AI “inference” computing using its existing mining infrastructure.
- Despite the shift, Cango remains active in mining, producing 500 BTC in January while planning to sell future rewards to fund its new AI business line.
Bitcoin miner Cango said it sold 4,451 Bitcoin (BTC) over the weekend for roughly US$305 million (AU$466 million), using the full amount to repay part of a Bitcoin-backed loan.
Cango said it plans to use its grid-connected mining infrastructure to provide distributed computing capacity for AI, while still running a Bitcoin mining operation. It added that it will manage capital between the two businesses under a “disciplined” allocation approach.
The company also named Jack Jin, previously with Zoom, as CTO to help build the AI line. Cango stock was trading below $0.95 and is down about 62% over the past six months. Cango shares fell about 3% after the announcement.
Cango remains committed to its mining operations, with a continued focus on enhancing mining economics and seeking an optimal balance between hashrate scale and operational efficiency. The company will be guided by a disciplined framework for asset allocation in pursuit of long-term value creation.
Related: Bitcoin Slump Hits Saylor’s Strategy at the Worst Possible Moment
CEO Says Selling to Continue
Cango said it operates more than 40 sites across four regions, mining nearly 500 BTC in January and selling 550 BTC during the month for about US$39 million (AU$59 million).
It ended January holding 7,474.6 BTC, valued at about US$528 million (AU$807.8 million). CEO Paul Yu said the company expects to keep selling part of newly mined BTC to fund expansion of its AI “inference” platform and near-term growth needs.
Bitcoin was last near US$70,727 (AU$108,212), down about 0.2% over 24 hours, roughly 10% lower on the week, and about 44% below its October peak of US$126,080 (AU$192,902).
Related: House Democrats Probe Trump-Linked Crypto Firm Over $500M UAE Investment
The post Bitcoin Miner Cango Sells $305M in BTC to Fund AI Compute Push appeared first on Crypto News Australia.
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