Bitcoin mining has seen a surge in operations recently, with companies like Cango Inc. making huge strides. The Chinese-based auto trading platform now holds 933.8 BTC, worth around $91 million, showcasing their growing trust in the asset. But what does this mean for Bitcoin’s future price?
Cango’s Bitcoin Production Soars in December
Cango, once primarily known for automotive financing and car trading has made a notable entry into the Bitcoin mining space, marking a daring yet calculated move towards the cryptocurrency market.
In its recent release December 2024 Bitcoin mining production update, Cango revealed impressive figures. By the end of December, the company had accumulated 933.8 Bitcoin, valued at around $91 million.
In December alone, Cango’s Bitcoin production reached 569.9 BTC, a 56% increase compared to November’s output of 363.9 BTC. This sharp rise in production suggests that the company is efficiently ramping up its mining operations.
Meanwhile, Cango’s hashrate, or mining power, remained strong at 32 EH/s, with a slight improvement in average operating hashrate from 29.8 EH/s in November to 30.4 EH/s by December, a 2% increase quarter-on-quarter.
Cango Holding All Mined Bitcoin
What’s noteworthy is that Cango’s Bitcoin holdings now account for approximately 50% of its market capitalization. This move highlights how the company views Bitcoin not just as a digital asset, but as a long-term store of value.
Given the upcoming Bitcoin halving event in April 2024,
With a daily production rate of 18.4 BTC, Cango’s decision to hold its mined Bitcoin could pay off, as it is positioning itself as a key player among mid-tier Bitcoin miners globally.
What’s Next for Cango and Bitcoin?
As more companies like Cango invest in Bitcoin mining, we can expect to see a shift in the broader market, potentially influencing Bitcoin’s price soon.
As of now, Bitcoin is trading steadily at $96,562, showing a slight increase in price and maintaining a market capitalization of $1.9 trillion.
