Bitcoin miner Cango sold $305 million of BTC during market slump to fund AI shift

Core Viewpoint - Cango (CANG) has sold 4,451 BTC for approximately $305 million to reduce leverage and pivot towards artificial intelligence infrastructure, indicating a strategic shift in its business model [1][2][3]. Group 1: Financial Performance - The sale of BTC raised about $305 million, with an average sale price of around $68,524 per coin, which is close to multi-year low prices for bitcoin [1]. - Cango used the proceeds from the BTC sale to pay down a bitcoin-collateralized loan, thereby strengthening its balance sheet [3]. - The company still holds 3,645 BTC valued at over $250 million, according to BitcoinTreasuries [3]. Group 2: Strategic Shift - Cango plans to transition into AI computing infrastructure by deploying modular GPU units across its global network of over 40 sites to cater to small and mid-sized businesses requiring on-demand AI inference capacity [2]. - The company aims to address the gap between rising compute demand and existing grid capacity, positioning itself to capitalize on this opportunity [4]. - Other bitcoin miners are also shifting focus from pure mining to AI data centers and high-performance computing, indicating a broader industry trend [4]. Group 3: Industry Context - Bitfarms (BITF) has announced plans to exit crypto mining entirely by around 2027, transitioning to high-performance computing and AI workloads [5]. - Analysts at KBW have noted that while the industry's pivot towards AI workloads is compelling, there are significant execution risks involved, leading to downgrades for companies like Bitfarms, Bitdeer (BTDR), and Hive Digital (HIVE) [5].