Cango Inc. struck digital gold. The company just revealed an impressive two-month Bitcoin haul. Following a decisive pivot to cryptocurrency mining, Cango mined 954.5 Bitcoin. This massive haul exceeded $100 million in value. Executives announced the results proudly on June 3rd.
The company extracted 470 Bitcoin throughout April. Furthermore, it mined 484.5 Bitcoin during May. This surge followed Cango’s complete commitment to Bitcoin mining. Furthermore, the firm sold its original Chinese business operations. Indeed, a Bitmain-linked entity acquired those assets in early April.
Mining Momentum
Cango previously reported strong first-quarter results too. Earlier in May, it disclosed mining 1,541 Bitcoin. That January-through-March production was worth roughly $162 million. Therefore, the April-May performance continues an upward trend.
The company’s computing power proved substantial. Cango operated at nearly 30 exahashes per second (EH/s) on average. This high hashrate significantly boosts mining success chances. Miners essentially race to solve complex mathematical puzzles. Subsequently, the winner confirms new Bitcoin blocks. They earn freshly created Bitcoin as their reward. Higher hashrate means more computational guesses per second. Naturally, this increases the odds of earning that block reward.
Strategic Payout
Cango’s founders secured a major personal deal simultaneously. Co-founders Xiaojun Zhang and Jiayuan Lin agreed to sell shares. They will transfer 10 million high-vote Class B shares. Enduring Wealth Capital will pay $70 million for them. Importantly, shareholder approval is still pending for this transaction. The company will maintain the shares’ special voting power. Each Class B share carries 20 votes currently. However, the founders will convert their remaining stock afterward. They will switch all other Class B shares to standard Class A stock. Class A shares each carry only one vote.
Enduring wealth capital could gain significant control. Post-deal, it might command over half the total votes. Alternatively, its voting power dips below 37% if Cango issues specific stock. Yet, its actual economic ownership stays below 5%. Essentially, voting influence outweighs financial stakes significantly.
Bitcoin Value Surge
Cango’s dramatic shift is clearly paying off. Its April-May Bitcoin production proves the strategy’s early success. Generating over $100 million in just two months speaks volumes. The company bet everything on Bitcoin mining. For now, that bet is yielding spectacular results. Industry watchers will monitor its next moves closely. Can Cango sustain this remarkable mining momentum? The coming months will provide the answer.
Written By Fazal Ul Vahab C H
