Settlement for the transaction was conducted in the USDT stablecoin. The entire proceeds of approximately $305 million were used to repay a bitcoin-backed loan.
“The sale of a portion of our bitcoin assets was carried out to strengthen the balance sheet and reduce leverage, creating additional capacity to finance the company’s strategic expansion in AI computing infrastructure,” the company said in a press release.
Following the disposal of a significant share of its crypto reserves, Cango CEO Paul Yu outlined the company’s next development phase in a letter to shareholders.
“Demand for AI is growing rapidly, while the capacity of power systems and grids is not. We see a widening energy supply gap and believe that a globally distributed, grid-connected infrastructure like ours can help close it,” the CEO emphasized.
The proposed strategy includes:
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Short term: deploying modular, container-based solutions for AI computing workloads;
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Medium term: building a software-defined platform to integrate distributed computing into a single corporate network;
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Long term: global scaling of the initiative to generate stable cash flow.
Cango’s bitcoin mining operations will serve as the financial backbone for the expansion into AI. In its mining business, the company plans to focus on improving efficiency and balancing installed hashrate (50 EH/s) with operational capacity (around 36.6 EH/s on average last week).
In January, the company mined 496 BTC.
In early February, industry participants began shutting down equipment en masse amid falling mining profitability. After the network difficulty adjustment on February 7 (–11%) and bitcoin’s rebound from a local low near $60,000, the hashprice recovered from roughly $27 per PH/s per day to about $35.
NFN8 files for bankruptcy
Mining company NFN8 Group and its subsidiaries have filed for bankruptcy protection under Chapter 11 of the U.S. Bankruptcy Code in Texas, according to TheMinerMag.
The firm owns more than 5,000 bitcoin mining rigs free of financial encumbrances and operates thousands more under lease agreements.
A defining feature of NFN8’s business model was the sale of mining equipment combined with immediate lease-back. Payments were funded by mining revenue, making the structure highly sensitive to uninterrupted operations and hashprice levels.
The company’s financial position deteriorated due to several events. In mid-2023, Core Scientific, which was undergoing restructuring, terminated its hosting agreement with NFN8, temporarily shutting down part of the miner’s fleet. After signing with an alternative provider, about 95% of equipment owners agreed to revised terms.
Following the April 2024 halving, mining profitability declined sharply and recovered much more slowly than in previous cycles. By June 2024, NFN8’s revenue was insufficient to cover operating costs and lease payments, which were subsequently suspended.
Payments resumed several months later, but by late 2025 the company again faced liquidity problems. A fire at a leased data center in Crystal City, Texas, wiped out around 50% of its mining capacity and an equivalent share of revenue. The timing of insurance compensation remains unclear.
In October 2024, three counterparties sued NFN8, alleging breach of contract, securities law violations, and fraud. The case was referred to arbitration. Chief restructuring officer Eric White believes the proceedings could be costly and may result in debt recovery from the company. According to NFN8’s filing, its assets total less than $50,000, while liabilities do not exceed $10 million.
Overall, the developments highlight a rapid shift in the mining industry toward AI computing infrastructure as Bitcoin mining profitability declines. Companies with access to energy and distributed data-center capacity can reposition their business models, while highly leveraged operators with fragile structures are being forced out of the market.
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