Bullish indicating open at $55-$60, IPO prices at $37
Investing.com -- Cango Inc . (NYSE:CANG) stock rose 3.2% after the company announced the acquisition of a fully operational 50 MW mining facility in Georgia, USA, for $19.5 million in cash. The move marks Cango’s strategic pivot toward building a diversified portfolio of Bitcoin mining and energy infrastructure assets.
The facility, which previously hosted Cango’s miners under a third-party agreement, will now allocate 30 MW to the company’s self-mining operations while reserving 20 MW for hosting services for third-party clients. The site is already equipped with essential mining infrastructure, accommodation, and support facilities.
This acquisition represents Cango’s first step in its plan to steadily increase its portfolio of owned and operated mining facilities. By taking control of low-cost power operations, the company aims to enhance operational efficiency and build long-term financial resilience.
"This acquisition is a critical milestone and marks the beginning of our vertical integration as we transition towards a more diversified and resilient portfolio of Bitcoin mining sites and energy infrastructure," said Peng Yu, CEO of Cango.
The company indicated that the move would help develop in-house operational expertise for managing self-owned mining sites. Cango also revealed plans to gradually pivot toward supplying energy for high-performance computing applications, potentially expanding its business beyond Bitcoin mining.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.