Cango Inc. Secures $10.5 Million Investment for Bitcoin Mining Expansion

Cango Inc. Secures $10.5 Million for Bitcoin Mining Expansion

Cango Inc., a leading player in the Bitcoin mining sector, has secured an investment of $10.5 million from Enduring Wealth Capital Limited (EWCL). This investment is facilitated through the issuance of 7 million Class B common shares at a price of $1.50 per share. Following this transaction, EWCL's stake in Cango is expected to increase from 2.81% to 4.69%, while its voting power will rise from 36.68% to 49.61%.

Paul Yu, CEO of Cango, emphasized that the increased investment from EWCL is a strong vote of confidence in the company's strategic direction. Cango plans to enhance its operational capabilities in Bitcoin mining, particularly by improving hashrate efficiency and upgrading its mining fleet. Additionally, the capital will be invested in energy and AI computing initiatives to create an integrated infrastructure platform for the digital economy of the future.

"This financing round is seen as an opportunity to accelerate our growth initiatives and advance the company's strategic priorities," stated Paul Yu.

The investment is subject to customary closing conditions, including approval from the New York Stock Exchange, and is expected to close in January 2026.

Key Takeaway: Cango Inc. is set to enhance its Bitcoin mining operations with a significant $10.5 million investment, reflecting strong confidence from EWCL.

Sberbank Enables Crypto-Backed Corporate Loans: A Milestone for Russia's Bitcoin Sector

Sberbank, Russia's largest bank, has made a groundbreaking move by issuing its first corporate loan backed by cryptocurrencies, marking a significant milestone for the financial market and the Bitcoin industry in Russia. This pilot project sets new standards for financing models in the Russian crypto sector and could serve as a model for other institutions.

The loan was granted to Intelion Data, a prominent player in the Bitcoin mining sector, which has been operational since 2017 and manages numerous data centers. The cryptocurrencies used as collateral are primarily sourced from Intelion's own Bitcoin production and will be securely held by Sberbank using the Russian security module 'Rutoken', akin to a hardware wallet.

"This pilot project not only highlights the growing acceptance of digital assets but also signals a shift in the banking landscape towards innovative financing models," stated industry experts.

As the regulatory framework for cryptocurrencies in Russia continues to evolve, this development could pave the way for more banks to explore alternative securities and open up new customer segments.

Key Takeaway: Sberbank's issuance of a crypto-backed loan signifies a transformative step for corporate financing in Russia, potentially reshaping the financial landscape.

Bitfarms Stock Faces New Risks Amid Market Volatility

Bitfarms has recently come under pressure as its stock price fell by approximately 3.25% on December 30, coinciding with the launch of a new leveraged ETF aimed at doubling the daily price movements of the Bitcoin mining stock. This decline is largely attributed to the overall weakness in the cryptocurrency market, which has adversely affected the entire mining sector.

Additionally, news from Russia regarding potential legislation to criminalize illegal crypto mining has added to the uncertainty in the sector, despite Bitfarms' operations being primarily in North America and Paraguay. The introduction of the leveraged ETF, while highlighting trading interest in Bitfarms, may also exacerbate price volatility due to daily rebalancing.

"The long-term strategy of Bitfarms includes diversification into high-performance computing and AI infrastructure, but short-term performance remains closely tied to Bitcoin prices," noted analysts.

As the new year approaches, it remains to be seen whether the ETF will attract additional investor flows or simply increase volatility in Bitfarms' stock.

Key Takeaway: Bitfarms faces significant risks amid market volatility, with its stock performance closely linked to Bitcoin prices and external regulatory developments.

KBW Upgrades TeraWulf to Outperform, Anticipates AI Pivot as Growth Catalyst

KBW has upgraded TeraWulf from "Market Perform" to "Outperform," raising its price target from $9.50 to $24. The bank noted that AI and high-performance computing (HPC) leasing are expected to surpass Bitcoin mining as the company's primary revenue source. Analysts predict rapid EBITDA growth and a valuation increase as leasing revenues scale.

According to KBW, the market is underestimating the potential shift from Bitcoin mining to HPC leasing, with a visible pipeline of 646 MW expected by 2027. The report suggests that HPC leasing could generate two-thirds or more of TeraWulf's revenues by 2026, significantly diminishing the role of mining in the company's business model.

"We believe that investors are underestimating the extent of the shift in TeraWulf's revenue mix and the robust growth drivers associated with it," stated analyst Stephen Glagola.

As TeraWulf continues to adapt to changing market dynamics, its focus on AI and HPC could position it favorably for future growth.

Key Takeaway: TeraWulf's upgrade by KBW reflects confidence in its strategic pivot towards AI and HPC, which may drive significant growth in the coming years.

Sources:

• Cango Inc. sichert 10,5 Millionen Dollar für Bitcoin-Mining-Expansion!
• Von Beschlagnahmungen zu Mining-Rigs: Wie Regierungen riesige Bitcoin-Bestände aufbauten
• KBW stuft TeraWulf (WULF) auf „Outperform“ hoch und erwartet, dass die KI-Wende ein starkes Wachstum antreibt
• IREN Aktie: Schleudergefahr!
• Bitfarms Aktie: Neue Risiken
• Sberbank ermöglicht Krypto-besicherte Firmenkredite: Ein Meilenstein für Russlands Bitcoin-Sektor