Cango, a Bitcoin miner, has temporarily reduced approximately 30% of its mining capacity, lowering its average operating hashrate to 34.55 EH/s from the 50 EH/s it had deployed, due to declining mining profitability. This move comes as hashprice, an essential metric for mining revenue, has dropped to near-breakeven levels, impacting the financial viability of operations across the industry. Cango reported that this reduction is part of its strategy to optimize equipment through upgrades, renegotiations of hosting agreements, and site relocations aimed at reducing power costs, reflecting broader trends as mining firms adapt to increased operational pressures. Additionally, Cango experienced further financial strain during February, liquidating a significant portion of its bitcoin reserves to manage outstanding loans amidst aggressive market conditions.
Cango cuts 30% of Bitcoin mining capacity amid profitability decline
