Cango Shifts Focus from Bitcoin Mining to High-Performance Computing

Cango Inc., a Chinese company that once teetered on the brink of a liquidity crisis, has completed its overhaul of a high-performance computing center in Georgia and signed its first customer for AI services. The facility was converted from an existing bitcoin mining site, with about 3 MW of capacity now available for heavy-duty computing power.

The company's CEO, Paul Yu, said the focus is shifting to HPC centers as bitcoin prices remain low. Cango plans to continue running its bitcoin and AI operations as 'parallel businesses,' with a focus on unit economics rather than scale in mining.

In the second quarter, the company mined 656 bitcoins at an average cost of $73,313 per coin, down from 422 coins per month in the first quarter. Cango's long-term debt level remained low at $31.2 million as of June 30, and the company has started executing a hedging strategy to mitigate bitcoin price volatility.