How Bitcoin Miners from Outside the Industry Are Reshaping Global Mining Dynamics

In late 2024, the bitcoin mining sector experienced a significant disruption when Cango (CANG), a Shanghai-based automotive lending platform, announced its entry into industrial-scale mining operations. This unconventional move has thrust traditional bitcoin miners into a new competitive landscape. The company is acquiring 50 exahashes per second (EH/s) of computing power for approximately $400 million, making it one of the largest bitcoin miners globally upon full deployment. This strategic pivot underscores a broader trend: as mining becomes increasingly capital-intensive and difficulty-dependent, established tech companies and financial platforms are recognizing bitcoin mining as a legitimate diversification opportunity.

Cango’s entry into the mining sector marks another chapter in the company’s ongoing reinvention strategy. Founded in 2010 and publicly listed in 2018, the platform initially built its reputation helping Chinese banks issue auto loans. Over the years, however, Cango has pursued multiple strategic expansions—first into vehicle export facilitation, then into electric vehicle investment with Li Auto, followed by renewable energy and AI-related computing projects. The transition into bitcoin mining represents the latest and most capital-intensive of these pivots.

The Strategic Investment Structure Behind Mining Operations

The financial architecture of Cango’s mining acquisition reveals how traditional companies approach entering the bitcoin mining space. The company is deploying resources across two distinct purchase agreements. First, it invested $256 million in cash to acquire 32 EH/s of computing equipment directly from Bitmain, a leading bitcoin mining machine manufacturer. Simultaneously, Cango committed to issuing $144 million in shares to acquire the remaining 18 EH/s from Golden TechGen—an entity controlled by Max Hua, former Bitmain Chief Financial Officer—alongside other undisclosed mining hardware suppliers.

The equity arrangement creates notable ownership implications. Once transactions fully settle, Golden TechGen and other equipment sellers will collectively hold approximately 37.8% of Cango, effectively giving equipment providers significant stakes in the auto-lending-turned-mining company. This structure reflects the bargaining power of experienced hardware providers in the bitcoin miners market.

Rapid Market Recognition and Stock Performance

The market responded dramatically to Cango’s mining announcement. The company’s stock price climbed to $4.56 by the close of 2024, representing a gain exceeding 362% from year-start levels—a surge substantially driven by investor enthusiasm surrounding its mining venture. According to Juliet Ye, Cango’s senior director of communications, this market attention marks an unprecedented development for the mid-cap Chinese firm.

“It’s been genuinely challenging for us to capture investor interest as a smaller-to-mid-cap Chinese company traded in the U.S.,” Ye explained in an interview. “Suddenly, with the mining announcement, the company receives an extraordinary level of attention. We’ve never witnessed this level of market enthusiasm before.”

This investor excitement underscores how bitcoin miners entering from adjacent sectors can attract capital market interest, particularly when they demonstrate rapid scaling capabilities.

Positioning Within the Global Mining Hierarchy

Once Cango’s complete 50 EH/s capacity reaches operational status, the company will control approximately 6% of Bitcoin’s total network computing power, given the current global hashrate of 823 EH/s. This positions Cango among the industry’s most substantial players, though still below the largest publicly-traded bitcoin miners.

For context, MARA Holdings (MARA), the world’s largest publicly traded mining company, operated approximately 47 EH/s as of November 2024. CleanSpark (CLSK) followed with 32 EH/s, while Riot Platforms (RIOT) commanded 26 EH/s. Cango’s 50 EH/s would immediately vault the company above these two competitors on the basis of raw computing capacity.

The competitive positioning reflects an industry-wide consolidation trend. “The bitcoin mining sector increasingly demands scaled operations to maintain profitability,” Cango’s management team noted in communications. “The landscape is characterized by consolidation, where larger installations possess competitive advantages stemming from escalating mining difficulty and the necessity for cutting-edge hardware investment.”

The Bitmain Dependency and Operational Strategy

A critical distinction separates Cango from established mining powerhouses: unlike its competitors, Cango does not currently operate its own mining fleet. Instead, mining rigs—distributed across locations including the United States, Canada, Paraguay, and Ethiopia—remain under Bitmain’s operational management. Cango is leveraging Bitmain’s facilities infrastructure, technical teams, and operational expertise to ensure smooth site performance.

This dependency reflects Cango’s recognition of the steep learning curve facing newcomers to bitcoin miners operations. “Although we enter with substantial computing resources, we recognize our status as newcomers to this sector,” Ye explained. “We require time to master industry practices, understand local tax frameworks, and navigate the broader market landscape. Thus, partnering with Bitmain and utilizing their operational teams represents a strategic starting point.”

However, this arrangement carries implications for long-term economics. Outsourcing mining operations to Bitmain likely entails higher per-unit costs compared to in-house operations. As Cango gains sectoral experience, the company may pursue developing internal mining expertise—potentially yielding cost reductions over extended timeframes.

Energy Efficiency and Market Conditions

The decision to enter bitcoin mining also reflects strategic thinking about energy market dynamics. Mining operations provide unique flexibility—operators can rapidly activate or deactivate rigs in response to grid conditions. Jurisdictions including Texas actively leverage this capability, incentivizing bitcoin miners to operate during low-demand periods while compensating operators for shutting down capacity during peak consumption intervals, such as during extreme weather events.

Regarding bitcoin holdings strategy, Cango has signaled conditional flexibility. “We remain open to tactical adjustments in our bitcoin position based on evolving market conditions,” Ye stated. During November alone, Cango’s mining operations yielded 363.9 BTC—a quantity worth approximately $35 million at that time.

The Broader Market Context

The cryptocurrency market has demonstrated volatility recently. Bitcoin currently trades at $67.96K, reflecting a 4.35% gain over the preceding 24 hours. This rebound follows extended selling pressure, though analysts caution that the advance may reflect technical positioning rather than fundamental catalysts. Key resistance thresholds exist near $72,000 and $78,000; sustained breakthroughs would signal stronger structural uptrend development.

Implications for the Bitcoin Mining Sector

Cango’s entry into bitcoin miners operations signals that industrial-scale mining has transcended its original community, attracting capital from companies with complementary expertise and financial resources. As mining economics increasingly favor consolidated, scaled operations, expect continued expansion of corporate participation—particularly from firms already possessing capital, infrastructure familiarity, and geographic diversity.

For Cango specifically, the coming months will prove crucial in demonstrating whether automotive lending expertise can successfully translate into mining operations excellence. If the company successfully develops in-house capabilities while managing Bitmain transition costs, Cango could establish itself as a durable force among global bitcoin miners. Should market conditions deteriorate, meanwhile, the company retains flexibility to adjust its mining posture through tactical bitcoin sales—an option providing strategic optionality many competitors lack.