Major Bitcoin Sale to Strengthen Balance Sheet
Bitcoin mining firm Cango has sold 4,451 Bitcoin on the open market, raising approximately $305 million in net proceeds. The company said the sale was approved by its board after reviewing current market conditions and was aimed at cutting financial leverage while reinforcing its balance sheet.
According to Cango, a portion of the funds was used to partially repay a Bitcoin-collateralized loan, reducing exposure to price volatility. The remaining capital is being reserved to support new growth initiatives, particularly the company’s planned expansion into artificial intelligence and high-performance computing infrastructure.
The move comes at a time when Bitcoin miners are under pressure from rising operational costs and shrinking margins, forcing many firms to reassess long-term strategies.
Strategic Shift Toward AI and High Performance Computing
Cango described the decision as part of a broader strategic pivot, highlighting plans to repurpose its globally connected, grid-linked infrastructure to provide distributed computing services for the AI sector. The company said the transition will be carried out through a phased roadmap, allowing it to gradually deploy capital while managing risk.
By leveraging existing power access and data center capabilities originally built for Bitcoin mining, Cango aims to tap into growing demand for compute resources driven by artificial intelligence workloads. The company believes this approach can generate more stable and diversified revenue streams compared to relying solely on Bitcoin mining.
Selling More Bitcoin Than It Mined
The latest transaction follows an earlier sale of 550.3 BTC, meaning Cango sold more Bitcoin than it produced in January. The company said this decision was influenced by near-term funding needs and operational challenges during the month.
Extreme cold and blizzard conditions reduced mining uptime in January, weighing on production levels. As a result, management opted to sell additional Bitcoin to support growth initiatives rather than hold reserves during a period of reduced output.
Cango disclosed that its Bitcoin holdings stood at 7,474.6 BTC at the end of January, down from 7,528.3 BTC at the end of December 2025. The sale of an additional 4,451 BTC has since significantly reduced the company’s reserves.
Miners Redirect Power and Capital Into AI
Cango’s move reflects a broader trend across the Bitcoin mining industry, where companies are increasingly diversifying into AI and HPC services. As mining economics tighten, operators are looking to monetize their power contracts, land, and data center assets by serving customers beyond the crypto sector.
Several large mining-linked firms have begun signing long-term agreements to supply GPU-based cloud capacity for artificial intelligence and HPC workloads. These deals often rely on infrastructure that was initially developed for Bitcoin mining, allowing companies to pivot without rebuilding from scratch.
One notable example is Bitcoin miner Iren, which in November 2025 agreed to a five-year deal worth $9.7 billion with Microsoft. Under the agreement, Iren committed hundreds of megawatts of capacity from its Texas campus to support AI computing, while continuing to operate one of the largest Bitcoin mining fleets in the industry.
Post-Halving Pressure Reshapes the Industry
These strategic shifts are unfolding against the backdrop of tougher post-halving economics in 2025. Industry research shows hashprice has fallen to multi-year lows, while network difficulty has climbed to record highs. Together, these factors have sharply compressed profit margins.
Many miners are now operating close to breakeven at current Bitcoin prices and electricity costs, leaving little room for error. In this environment, selling Bitcoin to reduce debt or fund diversification is becoming a more common tactic.
For Cango, the $305 million sale underscores how miners are adapting to survive and reposition themselves. As traditional mining returns come under strain, access to power and infrastructure is increasingly being viewed as a gateway to new opportunities in AI and high-performance computing.
