Cango Sells 4,451 BTC to Repay Bitcoin-collateralized Loan

Key Highlights

• In the latest announcement, Cango has announced the sale of 4,451 Bitcoin for $305 million 
• The company is expected to use this capital to strengthen its financial position and advance AI transformation, along with partially repaying a Bitcoin-collateralized loan
• On the flip side, Strategy and other financial institutions have announced the acquisition of new BTC, absorbing the market sell-off

Amid the current catastrophic drop in the crypto market, Cango, the leading Bitcoin mining and treasury company, revealed that it sold 4,451 Bitcoin for $305 million. This capital will be used to “strengthen financial position and advance AI transformation.”

This sale of BTC comes after getting approval from the Cango’s Board of Directors. According to the official press release, the settlement happened in USDT stablecoin, and it will be used to partially repay a Bitcoin-collateralized loan.

“The divestment of a portion of the Company’s Bitcoin holdings was executed to strengthen its balance sheet and reduce financial leverage, which provides increased capacity to fund the Company’s strategic expansion into AI compute infrastructure,” the company stated in the press release. 

Apart from this, Cango also announced the appointment of Mr. Jack Jin as the Chief Technology Officer (CTO) to oversee its AI business.

Strategy and Other Institutions Buy Dip in Bitcoin to Absorb Market Shock

While firms like Cango sell off Bitcoin due to the current market conditions, leading Bitcoin holding firms and other financial institutions have started making moves and buying during the current market dip.

On February 9, Strategy’s Michael Saylor unveiled the recent acquisition of Bitcoin, revealing that the Bitcoin holding firm has additionally acquired 1,142 BTC for approximately $90.0 million at approximately $78,815 per bitcoin. With this total acquisition, the company now owns 714,644 BTC in total. 

In a similar announcement, Binance SAFU Fund also revealed the purchase of an additional 4,225 BTC for $299.6 million, which brings its total count to 10,455 BTC.

Last week, BTC witnessed a sharp fall, slipping below $61,000. At the time of writing, the cryptocurrency is struggling to hold a position around $69,400 with a market capitalization of $1.38 trillion, according to CoinMarketCap.

There are numerous factors behind this downfall in the crypto market, including massive liquidation and overleveraged positions. This sharp fall in BTC and other altcoins’ prices sparked a panic in the crypto market. However, there is good news that the crypto market is trying to rebound.