From Auto Lending to Bitcoin Mining Powerhouse: How Cango Built a 50 EH/s Empire with Mining Machine Acquisition

In a striking move that reshaped the competitive landscape of bitcoin mining, Chinese automotive transaction service platform Cango emerged as an unexpected industry force in late 2024. The firm invested $400 million to acquire 50 exahashes per second (EH/s) worth of computing capacity through bitcoin mining machines, instantly vaulting it into the ranks of the world’s largest cryptocurrency miners. This pivot surprised industry observers, yet it represented yet another chapter in Cango’s consistent strategy of business diversification and market adaptation.

A Track Record of Strategic Transformation

Founded in 2010 and publicly listed in 2018, Cango built its initial reputation facilitating automobile loans through Chinese financial institutions. However, the company never confined itself to a single business model. Following its entry into vehicle financing, Cango progressively expanded into automobile exports, invested in Li Auto (a prominent Chinese electric vehicle manufacturer), and began exploring opportunities in the renewable energy sector—including high-compute infrastructure projects aligned with artificial intelligence development.

Bitcoin mining emerged as a logical extension of this diversification pathway. According to Cango’s management, the decision stemmed from recognizing the sector’s consolidation trends and the structural advantages of large-scale operations. “Bitcoin mining is a very good way to rebalance energy grids,” explained Juliet Ye, Cango’s senior director of communications, highlighting how miners can flexibly adjust their computing resources based on local energy demand patterns.

Rapid Scale-Up: The $400 Million Mining Machine Investment

Cango structured its mining machine acquisition across two major transactions. The company deployed $256 million in cash to secure 32 EH/s of computing power directly from Bitmain, the industry’s leading bitcoin mining equipment manufacturer. For the remaining 18 EH/s, Cango issued $144 million worth of shares, purchasing from Golden TechGen—a firm owned by former Bitmain Chief Financial Officer Max Hua—along with other undisclosed mining equipment suppliers. Upon completion, these sellers would collectively control approximately 37.8% of Cango’s equity.

The financial markets responded enthusiastically to this pivot. Cango’s stock finished 2024 at $4.56, representing a stunning 362% appreciation from the year’s opening levels, signaling strong investor confidence in the mining strategy’s commercial viability.

Commanding 6% of Bitcoin’s Total Hashrate

Once fully operational, Cango’s 50 EH/s mining capacity will represent approximately 6% of Bitcoin’s total network hashrate—a commanding position in a highly concentrated industry. For context, Marathon Digital Holdings (MARA), the largest publicly traded bitcoin miner, controlled approximately 47 EH/s as of November 2024. CleanSpark (CLSK) and Riot Platforms (RIOT), the sector’s next tier of leaders, operated 32 EH/s and 26 EH/s respectively. Cango’s rapid accumulation places the automotive-turned-mining firm in exclusive territory, demonstrating how capital deployment can dramatically reshape competitive dynamics within the sector.

Bitcoin’s network hashrate currently stands near 823 EH/s, making Cango’s contribution substantial and meaningful to the broader ecosystem’s security and operation.

Operational Dependency on Bitmain Infrastructure

A critical distinction between Cango and established mining heavyweights involves operational execution. Rather than building autonomous mining infrastructure, Cango currently relies extensively on Bitmain for facilities management and technical support. The mining operations span globally distributed locations including the United States, Canada, Paraguay, and Ethiopia—a geographic footprint requiring sophisticated coordination and expertise.

Ye acknowledged this operational reliance as a deliberate near-term strategy: “Even though we enter the industry with a significant amount of computing power, we are still new here, and we need time to adapt to the norms, and get a better understanding of the tax situation and the rest of the market. So at the beginning, we chose to work together with Bitmain and to use its operations teams.”

However, this arrangement carries long-term strategic implications. Dependence on Bitmain for infrastructure and operational oversight represents a material cost structure that management intends to reduce. Developing internal mining expertise and operational capacity would potentially deliver substantial economic efficiencies, though building such capabilities requires investment and market experience.

Revenue Generation and Bitcoin Holdings Strategy

Cango’s operational contribution became immediately evident. During November 2024 alone, the firm mined 363.9 BTC—a volume worth approximately $35 million at that valuation point. This production velocity underscores the financial magnitude of the company’s mining machine deployment.

Regarding disposition of accumulated Bitcoin holdings, management signaled flexibility based on market conditions. Cango has not committed to indefinite accumulation; instead, the firm contemplates “tactical reductions based on market conditions,” allowing strategic optionality as the Bitcoin market evolves. This stance positions Cango to capitalize on favorable pricing opportunities while maintaining long-term exposure to network participation.

At current Bitcoin prices near $68,000, even modest adjustments to holdings could generate significant capital events for the company, diversifying its revenue streams beyond traditional automotive and energy business segments.

Market Impact and Future Positioning

Cango’s entry catalyzed meaningful attention within the investment community. As Ye noted, “All of a sudden, a lot of people are very much interested in Cango. The buzz around the company — we’ve never seen this before in the past.” The mining venture accomplished what traditional automotive financing operations could not: positioning a mid-cap Chinese technology firm as a recognized player within cryptocurrency infrastructure.

Looking forward, the trajectory depends on both Bitcoin’s market conditions and Cango’s capacity to execute operational consolidation. Transitioning from Bitmain-dependent mining machine operations to proprietary infrastructure represents the natural evolution path, one that would enhance margins and operational autonomy. The combination of substantial computing capacity, proven capital deployment capability, and willingness to adapt business strategy positions Cango as a material force within bitcoin mining for years to come.