Bitcoin miner Cango (CANG) completes sale of 4,451 $BTC The corporate raised about $305 million in USDT over the weekend because it appears to be like to scale back leverage and reposition its enterprise round synthetic intelligence infrastructure.
The corporate introduced that it raised $305 million from the sale, implying a mean sale worth of round $68,524 per coin, which isn’t a lot increased than Bitcoin’s multi-year lows.
The inventory was little modified in Monday buying and selling, however is down 83% from a yr in the past.
The corporate mentioned its Bitcoin gross sales are “based mostly on a complete evaluation of present market circumstances” as the corporate plans to transition to AI computing infrastructure. Cango plans to deploy modular GPU items throughout its world community of greater than 40 areas to serve small and medium-sized companies that require on-demand AI inference capabilities, the corporate mentioned.
The corporate used its proceeds $BTC It strengthened its stability sheet by promoting it to repay a Bitcoin-backed mortgage. The corporate nonetheless has 3,645 folks $BTC Based on information from BitcoinTreasuries, it’s price greater than $250 million.
“In response to latest market circumstances, we made monetary changes to strengthen our stability sheet and scale back our monetary leverage, which can enhance our potential to fund our strategic enlargement into AI computing infrastructure,” the corporate mentioned in a letter to shareholders.
The corporate’s transfer into the AI area comes because it faces what it describes as a spot between rising computing calls for and current grid capability. Cango wrote that it’s properly positioned to reap the benefits of that hole.
Kango will not be alone. A rising group of Bitcoin miners are scaling again their publicity to pure mining and redirecting capital and infrastructure to AI information facilities and high-performance computing.
BitFarms (BITF) famously declared that it was not a Bitcoin firm, saying it deliberate to fully exit crypto mining by round 2027, because it transitioned to high-performance computing and AI workloads.
Analysts at KBW warn that whereas the business’s pivot to AI workloads is enticing, the trail to monetization comes with execution dangers. This led to downgrades not solely of Bitfarms but in addition of Bitdeer (BTDR) and Hive Digital (HIVE).
