Chinese automotive services provider Cango Inc. (NYSE: CANG) has sold 2,000 Bitcoin (BTC) worth approximately $140 million at current prices, according to corporate filings and market analysts. The move aims to reduce corporate debt and cut costs associated with the company’s experimental cryptocurrency mining operations launched in 2021.
The Shanghai-based company, primarily known for auto financing and dealership support services, began diversifying into Bitcoin mining during the last crypto bull market. However, with Bitcoin prices remaining volatile and mining profitability under pressure, Cango appears to be retreating from its crypto ambitions. Sources familiar with the matter indicate the proceeds will be used to pay down dollar-denominated bonds maturing in 2025.
“This is a prudent liquidity management decision,” said a Hong Kong-based analyst covering Chinese ADRs who requested anonymity due to company policy. “Many firms that dabbled in crypto during the pandemic are now unwinding those positions to focus on core businesses.” Blockchain data shows the Bitcoin was sold via institutional OTC desks rather than public exchanges.
The divestiture comes as Chinese regulators maintain a hostile stance toward cryptocurrency activities. While Cango’s mining operations were based overseas, analysts suggest the regulatory environment may have influenced the timing. The company still holds an undisclosed amount of Ethereum (ETH) acquired during its crypto push.
Market observers will watch whether other China-linked firms follow suit in monetizing crypto holdings. The move could signal broader corporate risk aversion ahead of anticipated Federal Reserve rate cuts later this year.