Bitcoin mining company Cango sold 4,451 BTC on the open market and raised about $305 million in USDT, according to company disclosures. The transaction covered roughly 60% of its 7,476-BTC reserves and funded repayment of a bitcoin-backed loan.
The firm said the sale aimed to strengthen its balance sheet and cut leverage at a time of market pressure. The company tied the decision to a broader shift toward artificial intelligence computing infrastructure.
“The sale of part of the bitcoin assets was carried out in order to strengthen the balance sheet and reduce leverage, which will provide additional opportunities to finance the company’s strategic expansion in artificial-intelligence computing infrastructure,” the press release said.
Cango confirmed that it used all proceeds from the transaction to repay the secured loan. The company still holds 3,645 BTC valued at more than $250 million, according to BitcoinTreasuries data.
Shares in the Dallas-based miner showed limited reaction after the announcement but remained sharply lower over longer periods, with declines over the past year and recent months.
We've taken a deliberate step to support the next phase of our transformation:
— CANGO (@Cango_Group) February 9, 2026
📌Balance sheet optimization: Completed the sale of 4,451 BTC, generating approximately US$305 million in net proceeds to reduce financial leverage and fund future growth initiatives.
📌Leadership…
Strategy turns toward distributed compute
Chief executive Paul Yu outlined the next phase of the company’s direction in a shareholder letter that focused on AI demand and energy constraints.
“Demand for AI is growing rapidly. The capacity of power systems and grids is not. We see a widening gap in power supply and believe that a globally distributed, grid-connected infrastructure like ours can help bridge it,” Yu wrote.
The plan includes three stages. The near term focuses on containerised modular systems for AI workloads. The medium term targets a software-defined platform that integrates distributed compute resources into a single enterprise network. The long-term aims at global expansion with stable cash flow.
Cango said mining will remain part of its operations. The firm targets improved efficiency and a balance between an installed hash rate of 50 EH/s and an operating capacity of about 36.6 EH/s.
Building on today's Bitcoin sale update, our CEO Paul Yu shared a new Shareholder Letter outlining how we're thinking about Cango's next chapter.
— CANGO (@Cango_Group) February 9, 2026
Over the past year, we focused on building a solid foundation—scaling to 50 EH/s, tightening operations, exiting legacy businesses,… pic.twitter.com/TVhX69gOA0
The company mined 496 BTC in January and runs more than 40 sites across multiple regions. It also appointed Jack Jin, formerly of Zoom, as chief technology officer to support the development of the AI business.
“The company is executing a strategic pivot by utilizing its globally accessed, grid-connected infrastructure to provide distributed compute capacity for the AI industry,” Cango said in a statement.
The company noted that it plans to deploy modular GPU units across its network to serve small and mid-sized enterprises that need AI inference capacity.
Mining economics remain volatile
Industry conditions shifted in early February after an 11% difficulty adjustment and a rebound in bitcoin price from around $60,000. Hashprice recovered from about $27 per PH/s per day to roughly $35, according to Hashrate Index data.
Mining profitability still presents challenges for some operators. Equipment shutdowns occurred across parts of the sector during periods of weaker returns.
Cango said it will continue mining while expanding AI compute services.
“Cango remains committed to its mining operations, with a continued focus on enhancing mining economics and seeking an optimal balance between hashrate scale and operational efficiency,” the company stated.
Bankruptcy case shows pressure on smaller operators
Financial strain has pushed some miners into restructuring. NFN8 Group and subsidiaries filed for Chapter 11 bankruptcy protection in Texas, according to TheMinerMag. The firm owns more than 5,000 unencumbered mining rigs and operates thousands of leased machines.
Its model relied on selling equipment and leasing it back while payments depended on mining revenue. That structure proved vulnerable during periods of lower hashprice and equipment downtime.
A series of setbacks weakened finances. Core Scientific terminated a hosting agreement in mid-2023 during its restructuring process. Some machines shut down until a new provider stepped in, and about 95% of device owners accepted revised terms.
After the April 2024 halving, revenue dropped, and recovery lagged earlier cycles. By June 2024, income failed to cover operating costs and lease payments. Payments paused and later resumed. Liquidity pressure returned in late 2025.
A fire at a leased data center in Crystal City, Texas removed about half of the company’s mining capacity and revenue. Insurance timelines remain unclear. Legal disputes added further pressure after counterparties filed claims that alleged breach of contract, securities violations, and fraud.
Court documents show less than $50,000 in assets and liabilities up to $10 million.
Sector pivots toward AI as capital shifts
Several mining companies have redirected capital toward artificial intelligence infrastructure and high-performance computing. Bitfarms has said it plans to exit bitcoin mining by around 2027 and reorient its business toward AI-driven operations in the United States.
Cango said it will maintain mining while building new compute services. The company framed the transition as a response to demand for AI capacity and constraints in energy and infrastructure.
“Starting this month, we will selectively sell a portion of newly mined Bitcoin to support the expansion of our inference platform and other near-term growth initiatives,” Yu said in a statement.
The company described the strategy as a disciplined approach to liquidity and asset allocation. Its shift reflects a broader transition across parts of the mining sector as firms search for stable revenue sources beyond bitcoin rewards.
Oleksii Shumak
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