Cango Sells 4451 BTC to Fund AI Infrastructure Expansion Translation: Cango Sells 4451 BTC to Fund AI Infrastructure Expansion

The mining firm Cango has sold 4,451 BTC on the open market, which represents about 60% of its total Bitcoin reserves amounting to 7,476 BTC.

The transaction was settled in the stablecoin USDT. The proceeds, totaling approximately $305 million, are earmarked for repaying a loan secured by Bitcoin.

“The decision to sell a portion of our Bitcoin assets was made to strengthen our balance sheet and reduce our borrowing, which will create further opportunities for financing strategic expansion in our artificial intelligence computing infrastructure,” the press release stated.

Following the significant offloading of crypto reserves, Cango’s CEO Paul Yu communicated the company’s development plans to shareholders.

“The demand for AI is rapidly increasing, while the capacity of energy systems and networks is not. We are witnessing a widening gap in energy supply and believe that a globally distributed, network-connected infrastructure like ours can help bridge that divide,” emphasized the company leader.

The proposed strategy includes:

The mining operations of the company will serve as the financial backbone for the development of the AI initiative. In the cryptocurrency mining sector, Cango will focus on enhancing efficiency and achieving a balance between its established hash rate (50 EH/s) and its operational capacity (approximately 36.6 EH/s on average last week).

In January, the company mined 496 BTC.

By early February, industry participants began to massively shut down their equipment amid declining mining profitability. After a network difficulty adjustment on February 7 that decreased by 11% and Bitcoin’s recovery from a local low around $60,000, the hash price rebounded from about $27 per PH/s daily to around $35.

However, not all miners can sustain the current profitability level.

The mining company NFN8 Group and its subsidiaries have filed for bankruptcy under Chapter 11 of the U.S. Bankruptcy Code in Texas. This was reported by TheMinerMag.

The firm operates over 5,000 Bitcoin mining units that are free from financial obligations and manages thousands more under leasing agreements.

A key feature of NFN8’s business model was the sale of mining equipment while simultaneously leasing it back. Payments were derived from mining revenues, making this structure highly sensitive to the uninterrupted operation of equipment and hash prices.

The company’s financial situation was exacerbated by a series of events. In mid-2023, Core Scientific, which was in the process of restructuring, terminated its hosting agreement with NFN8, resulting in a portion of the miner’s units being temporarily turned off. After signing a contract with an alternative provider, about 95% of device owners agreed to new terms.

Following the halving in April 2024, mining profitability took a significant hit and recovered much slower than in previous cycles. By June 2024, NFN8 found its revenues insufficient to cover ongoing expenses and rental payments, which were subsequently suspended.

Payments resumed a few months later, but by the end of 2025, the company faced liquidity problems once again. A fire at a rented data center in Crystal City, Texas, cost the firm about 50% of its mining capacity and, correspondingly, half of its revenue. The timeline for insurance payouts remains unclear.

In October 2024, three of NFN8’s counterparties filed a lawsuit against the company, accusing it of breach of contract, securities law violations, and fraud. The case has been referred to arbitration. Restructuring director Eric White believes that the proceedings will be costly for the company and could result in debt recovery.

According to NFN8’s statement, its assets are valued at under $50,000, while liabilities do not exceed $10 million.

Furthermore, reports have emerged in Russia about the potential bankruptcy of Bitcoin miner BitRiver.