Publicly traded Bitcoin miner Cango Inc. has sold 4,451 Bitcoin for approximately $305 million over a recent weekend. The company stated the proceeds were used to repay a Bitcoin-backed loan, reducing leverage tied to Bitcoin collateral, and to support its strategic expansion into providing distributed compute power for artificial intelligence (AI) workloads.
The sale is part of a broader balance sheet restructuring as Cango reallocates capital towards AI infrastructure. Despite the significant divestment, the company plans to continue its Bitcoin mining operations, holding over 7,400 BTC as of the end of January. Cango indicated it may continue selectively selling newly mined Bitcoin to fund near-term AI growth initiatives while managing liquidity and operating risk.
In a related and simultaneous development, Cango announced the closing of a $10.5 million equity investment from Enduring Wealth Capital Limited (EWCL). Furthermore, the company secured definitive agreements for an additional $65 million in equity investments from entities controlled by its Chairman, Xin Jin, and director Chang-Wei Chiu.
The $65 million in committed investments includes a $39.57 million commitment from Fortune Peak Limited (owned by Mr. Chiu) and a $25.43 million commitment from Armada Network Limited (owned by Mr. Jin). The purchase price was set at $1.32 per share. The company stated it intends to use the proceeds from all these investments to support its AI and computing infrastructure expansion while strengthening its balance sheet.
The strategic shift comes amid tightening margins in the Bitcoin mining sector and rising energy costs, which have prompted several competitors to rebrand as infrastructure or compute providers focused on AI demand. Cango's stock declined following the disclosure of the Bitcoin sale, having fallen over the past six months due to sector-wide earnings pressure and uncertainty around strategic pivots to AI.
