Cango sold 4,451 BTC over the weekend, generating $305 million to reduce leverage from a bitcoin-collateralized loan, settling the transaction in Tether’s USDT stablecoin to pay down debt backed by its Bitcoin holdings.

The move was a balance-sheet adjustment, not a retreat from mining operations, as Cango remains committed to Bitcoin operations while prioritizing capital discipline and approved the sale after reviewing market conditions.

Bitcoin mining involves using specialized computing systems to solve puzzles and add BTC transactions to the chain, with miners receiving rewards in BTC, but factors like halvings, rising power costs, and recent crashes have made mining less profitable.

Cango used AI to pivot strategically, with proceeds from the BTC sale expected to support its expansion into AI by providing distributed compute capacity for the industry, focusing on inference capacity and developing software to coordinate distributed GPU resources.

Cango appointed Jack Jin as chief technology officer of its AI business line to lead the effort, after entering the bitcoin mining sector in late 2024 and closing 2025 with reserves exceeding 7,500 BTC, aiming to balance mining scale and efficiency while advancing its AI strategy.

Cango’s stock was trading at 0.9690 in pre-market hours on Feb. 9, down 0.49% from the previous trading period.

Read more at Yahoo Finance: NYSE-listed firm dumps millions in Bitcoin to repay loan