Cango Offloads $305 Million in Bitcoin Holdings to Reduce Debt and Finance AI Expansion
The transaction highlights the strategic transformation underway among Bitcoin mining companies as profitability challenges intensify across the sector.
In a major move, Bitcoin mining company Cango has offloaded 4,451 Bitcoin through open market transactions, securing approximately $305 million in net proceeds that the firm indicates were deployed to settle part of a loan backed by Bitcoin collateral and to bolster its financial position.
In an announcement released Monday, the firm revealed that the sale, which received approval from its board of directors following an assessment of "current market conditions," aims to decrease the company's financial leverage while creating additional financial flexibility to support its anticipated move into the artificial intelligence (AI) and high‑performance computing (HPC) infrastructure sectors.
According to Cango, this "strategic pivot" involves leveraging its "globally accessed, grid-connected infrastructure" to deliver distributed computing power for AI sector applications, with the company noting that the transition would be rolled out according to a structured, phased implementation plan.
This transaction comes on the heels of an earlier sale of 550.3 BTC, as Cango liquidated more Bitcoin (BTC) than it mined during January to bolster its short‑term expansion objectives after severe weather conditions, including extreme cold temperatures and blizzards, negatively impacted operational uptime throughout the month.
Based on the company's February 3 operational update, Cango held Bitcoin reserves totaling 7,474.6 BTC by the conclusion of that month, representing a decline from the 7,528.3 BTC held at December 2025 month-end, with the subsequent sale of an additional 4,451 BTC further decreasing the company's cryptocurrency holdings.
Mining operations redirect infrastructure and investment toward AI sector
The move by Cango illustrates a wider trend emerging among Bitcoin mining operations as these companies seek to create diversified income sources by channeling electrical power and data center infrastructure to serve AI and HPC clients.
Several other major mining‑related entities are executing extended contracts to deliver GPU‑powered cloud infrastructure for artificial intelligence and HPC applications, utilizing electrical capacity and data center facilities that were initially developed for Bitcoin mining operations.
As one example, Bitcoin mining operator Iren entered into a five‑year agreement valued at $9.7 billion with Microsoft in November 2025 to supply artificial intelligence computing capabilities from its facilities in Texas, dedicating hundreds of megawatts of electrical capacity to contracted GPU infrastructure hosting while simultaneously maintaining operations of one of the sector's most substantial Bitcoin mining operations.
These strategic shifts are unfolding as mining profitability dynamics become increasingly challenging throughout the industry in 2025. Data compiled by Cointelegraph Research indicates that hashprice metrics have declined to levels not observed in multiple years while network difficulty has reached unprecedented heights, with severely squeezed profit margins leaving numerous mining operations functioning near breakeven thresholds given current Bitcoin prices and operational expense structures.