Cango, a publicly listed Chinese conglomerate, has consented to divest its longstanding operations in China to an entity affiliated with rival Bitmain as it aims to fully engage in Bitcoin (BTC) mining, as reported by The Miner Mag.
Cango has decided to sell its traditional auto financing segment in China to Ursalpha Digital Limited in a $352 million transaction, according to the report.
Moreover, Bitmain is allegedly allocating 32 exahashes per second (EH/s) to Cango. This arrangement essentially introduces Bitmain’s mining assets to the public market, stated The Miner Mag.
Exahashes gauge a miner’s input to the Bitcoin network’s hashrate, which represents the overall computational power that secures the network.
The Miner Mag noted that Ursalpha Digital Limited shares the same corporate address and founding director as Antalpha, an entity ultimately overseen by the chairman of Bitcoin miner Bitmain.
Proxies for Cango’s shares on the NYSE have risen 25% this month. Source: Google Finance
Related: Analysts observe Bitcoin miners’ AI and chip sales leading up to Q4 earnings
Connection to the Trump family
Bitmain has faced scrutiny in the US after the country imposed sanctions on its artificial intelligence subsidiary Sopghgo, Bloomberg reported.
As per Bloomberg, Bitmain has a collaborative relationship with American Bitcoin, a mining operation associated with the Trump family that was formed in March through a deal with Hut 8, a provider of energy and computing infrastructure.
On March 31, Hut 8 acquired a controlling interest in American Bitcoin (formerly known as American Data Centers), whose founders include US President Donald Trump’s sons, Donald Trump Jr. and Eric Trump.
Hut 8 has shifted its Bitcoin mining machinery to American Bitcoin, which is reportedly considering an initial public offering (IPO), according to Bloomberg.
The companies indicated that American Bitcoin will concentrate on crypto mining, while Hut 8 will focus on data center infrastructure for purposes like high-performance computing.
In 2025, Bitcoin mining stocks have encountered difficulties due to falling cryptocurrency values and pressures on business models resulting from the Bitcoin network’s halving in April, as outlined by a JPMorgan research note shared with Cointelegraph.
Every four years, the volume of BTC mined per “block”—a grouping of transaction data stored on the blockchain—is halved. April’s halving reduced mining rewards from 6.25 BTC to 3.125 BTC per block.
Magazine: Elon Musk’s proposal to operate government on blockchain encounters significant challenges
