Cango sells 6,451 BTC and shifts away from mining

Cango Inc. sold 6,451 BTC between February and March 2026, generating approximately $442 million to repay crypto-backed loans. The move comes as the company shifts toward AI infrastructure and reduces reliance on bitcoin mining. This highlights a broader transformation in the mining industry.

BTC sales helped cut outstanding liabilities

In early February, the company sold 4,451 BTC at an average price of about $68,500 per coin. The transaction generated roughly $305 million.

In March, Cango sold an additional 2,000 BTC, raising about $137 million. The proceeds were used to further reduce outstanding crypto-backed debt to $30.6 million.

By the end of March, the company’s bitcoin holdings dropped to 1,025.69 BTC, down from over 7,500 BTC. Its operational hashrate declined to 37.01 EH/s.

Falling mining profitability is reshaping strategies

The decision reflects tightening mining economics. Profit margins are shrinking, while operational costs remain high. As a result, companies are seeking more stable revenue streams.

Cango also secured additional funding:

• $65 million in equity from insiders;
• $10 million convertible note;
• $10.5 million raised earlier.

At the same time, the company improved efficiency by:

• upgrading to Bitmain S21 and S21XP miners;
• relocating capacity to lower-cost energy regions;
• decommissioning outdated equipment.

These steps reduced the cost per mined bitcoin to about $68,215.

Miners are using assets to fund operations more often

Large-scale BTC sales reinforce a growing trend among miners. Companies are increasingly liquidating holdings to manage debt and fund operations.

This could lead to:

• increased supply pressure on the market;
• reduced long-term holding strategies;
• tighter mining margins across the sector.

However, network dynamics may offset individual hashrate reductions.

The industry is shifting to hybrid revenue models

Cango’s strategy reflects a structural shift in bitcoin mining. The sector is evolving toward infrastructure-driven business models.

Key trends include:

• flexible allocation of computing resources;
• expansion into AI and high-performance computing;
• stronger focus on energy efficiency.

As a result, mining companies are becoming hybrid infrastructure providers, combining bitcoin mining with AI compute services.

Read also: Cango Cuts Mining Utilization to 70% of Capacity