SHANGHAI - Cango Inc . (NYSE: NYSE:CANG), an automotive transaction service platform in China, has disclosed its November 2024 crypto mining production figures. With a market capitalization of $425 million and an InvestingPro Financial Health score of "GREAT," the company has made a strategic $256 million investment in crypto mining machines, substantially increasing its Bitcoin production capabilities.
In November, Cango produced a total of 363.9 Bitcoins, averaging 18.85 Bitcoins daily. This production comes after the company's purchase of mining machines with a combined hashrate of 32 Exahash per second (EH/s) from a leading digital currency mining server manufacturer. The legal transfer of the machines' title to Cango is pending, as per the agreement terms.
Cango's deployed hashrate for the month stood at 32 EH/s, with an average operating hashrate of 29.75 EH/s. Notably, the company did not sell any of the Bitcoins it mined in November, holding all 363.9 Bitcoins produced.
This update follows Cango's announcement on November 19, 2024, regarding the completion of its cash-settled transaction for the acquisition of the mining machines. The investment marks Cango's expansion into the cryptocurrency sector, diversifying its business operations beyond its traditional automotive service platform. The company's strong financial position, with a current ratio of 7.83 and minimal debt-to-equity ratio of 0.01, supports this strategic expansion.
The company's foray into crypto mining is a strategic move, leveraging the growing digital currency market. As of the end of November 2024, Cango's total Bitcoin holdings equaled the number of Bitcoins mined during the month, indicating a hold strategy for the newly mined digital assets.
This production update is based on a press release statement from Cango Inc. The company has not provided any further details on the expected financial impact of its crypto mining business on its overall performance. With the stock showing remarkable growth of nearly 300% year-to-date, investors and market watchers will likely follow Cango's subsequent disclosures for insights into the profitability and sustainability of its new venture. For deeper insights into Cango's financial health and growth prospects, including 8 additional ProTips and comprehensive valuation metrics, visit InvestingPro.
In other recent news, Cango Inc. reported a robust financial performance in its third quarter of 2024, with total revenue reaching RMB 26.95 million and a net profit of RMB 67.88 million. This strong performance was attributed to effective cost control and risk management strategies. The company also maintained a low nonperforming loan ratio with an outstanding loan balance of approximately RMB 4.8 billion.
In addition to its financial performance, Cango Inc. made significant strides in diversifying its portfolio with the acquisition of cryptocurrency mining assets. The company also announced a $400 million purchase of crypto mining machines from Bitmain Technologies Georgia Limited and other sellers, marking its expansion into the crypto sector.
Furthermore, Cango Inc. has recently appointed a new accounting firm, a significant event in the company's corporate governance practices. The company also reported growth in user engagement on its U-Car app and AutoCango.com, with plans to expand AutoCango.com into international markets and enhance its features. These are among the recent developments for Cango Inc., which continues to implement stringent cost control and risk management strategies to improve its operational efficiency and financial structure.
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