SHANGHAI – Cango Inc. (NYSE:NYSE:), a Chinese automotive trading service platform, has announced its crypto mining production volume for November 2024. The company, which has a market capitalization of $425 million and an InvestingPro Financial Health score of “GREAT,” has made a strategic investment of $256 million in crypto mining machines, significantly increasing its production capacity.
In November, Cango generated a total of 363.9 Bitcoins and an average of 18.85 Bitcoins per day. The production comes after the company purchased a mining machine with a total hashrate of 32 Exahash/s (EH/s) from a leading digital currency mining server manufacturer. Pending legal transfer of ownership of the machine to Cango in accordance with the terms of the agreement.
Cango deployed a hashrate of 32 EH/s this month, with an average operating hashrate of 29.75 EH/s. Notably, the company did not sell any of the Bitcoins it mined in November, retaining all 363.9 Bitcoins produced.
This update follows Cango's announcement on November 19, 2024 regarding the completion of a cash settlement transaction for the acquisition of mining machines. This investment marks Cango's expansion into the cryptocurrency space and diversifies its business operations beyond traditional automotive service platforms. The company's strong financial position, with a current ratio of 7.83 and a minimum debt-to-equity ratio of 0.01, supports this strategic expansion.
The company's foray into cryptocurrency mining is a strategic move to capitalize on the growing digital currency market. As of the end of November 2024, Cango's total Bitcoin holdings are equal to the number of Bitcoins mined in that month, indicating a holding strategy for newly mined digital assets.
This production update is based on Cango Inc.'s press release statement. The company did not provide details about the expected financial impact of its cryptocurrency mining operations on its overall results. With the company's stock showing impressive growth of nearly 300% year-to-date, investors and market watchers are likely to keep an eye on Cango's subsequent disclosures for insight into the profitability and sustainability of the new business. expensive. For deeper insight into Cango's financial health and growth prospects, including 8 additional Pro Tips and comprehensive valuation metrics, visit InvestingPro.
In other recent news, Cango Inc. reported strong financial performance for the third quarter of 2024 with total revenue of RMB 26.95 million and net profit of RMB 67.88 million. This strong performance is due to effective cost management and risk management strategies. The company also maintains a low non-performing loan ratio, with outstanding loans of approximately 4.8 billion yuan.
In addition to its financial performance, Cango Inc. has also made significant progress in diversifying its portfolio with the acquisition of cryptocurrency mining assets. The company also announced the purchase of crypto mining machines from Bitmain Technologies Georgia Limited and other sellers for $400 million, marking its expansion into the crypto sector.
Additionally, Cango Inc. recently appointed a new accounting firm. This is an important event in the company's corporate governance practices. The company also reported increased user engagement on its U-Car app and AutoCango.com, and plans to expand AutoCango.com into international markets and enhance its functionality. These are among the recent developments at Cango Inc., which continues to implement rigorous cost control and risk management strategies to improve operational efficiency and financial structure.
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