Congo is a Chinese company originally focused on helping people access car financing in China. The company made a bold move in 2024 toward the Bitcoin mining industry.
The Cango was established in 2010 and went public in 2018 and company generated revenue of $363 million in 2024. The year, company expanded its business into electric vehicles and renewable energy. On the other hand, the company made a bold move by investing extensively in the mining of Bitcoin in 2024.
Congo’s major investment in Bitcoin mining
Congo revealed that they invested $400 million to purchase 50 (EH/s) of bitcoin mining power. This purchase positioned Cango as one of the largest Bitcoin miners globally, as the company purchased 32 EH/s from Bitman, a significant Bitcoin mining hardware producer. That produced it for $256 million and obtained the rest 18 EH/s by providing $144 million worth of shares. Congo will control around 6% of the global mining power once it is fully operational, which will place the company among the top companies like Marathon Digital and Riot Platforms.
Why did they shift to Bitcoin mining?
To expand its business, Congo stepped into Bitcoin mining because it wanted to diversify its portfolio and gain profit from the Bitcoin mining sector. Congo believes in the concept of clean energy, so they wanted to perform the mining as efficiently as possible by adjusting their power consumption based on demand, that is, when energy usage exceeds limits, these miners can scale back their operations to stabilize the consumption.
Outcomes of the strategy.
Upon the announcement, the market acknowledged its new direction, and Congo’s stock saw an excellent surge of over 360% in 2024. The company gained the spotlight on itself, which had struggled earlier to gain visibility in the U.S. Due to the bold move into bitcoin mining, they attracted both investors and the industry's attention.
Bitcoin investments and market plan
Congo had mined 363.9 BTC, around 35$ million in value before November 24. The company will adjust its Bitcoin holding based on market conditions. It might dispose of some of its mined Bitcoin when the market price is favorable or keep it at low market prices.
Cango's step into Bitcoin mining has shown great success already, making the company move from being a car loan provider to a major player in the Bitcoin mining area.
Also, the increase in the company's stock and investor interest growth mirrored the vast potential of this new strategy. As Cango continues to expand its range of Bitcoin holdings and operations, it is well-positioned to become a significant player in the cryptocurrency industry.
