Canggu: Glamorous Transformation, Huge Potential

Recently, Cangu Company released a series of important announcements, attracting widespread attention from the market. This company, originally focused on car dealership, is undergoing a bold business transformation to enter the cryptocurrency mining industry.

According to the announcement, Cangu has acquired running cryptocurrency mining machines with a hash rate of 32Eh/s for a price of $256 million. These machines are distributed across five countries, including the United States, the Middle East, and Africa. Notably, these mining machines are primarily the flagship S19 model, which is expected to have about four years of remaining lifespan.

In addition, the company plans to raise $144 million through a targeted private placement to acquire an additional 18 Eh/s of operational mining equipment. This transaction is expected to be completed by March 2025, with the seller being Golden TechGen. As part of the deal, the company also signed a supplemental agreement that will issue additional shares worth $97.1055 million to investors as a reward if the company's market capitalization reaches a specific level for 30 consecutive trading days within the next 30 months.

Although the price of Bitcoin has risen significantly recently, the acquisition price by CanGoo is relatively reasonable. This is because the company had already reached a preliminary agreement with the seller when the price of Bitcoin was in the range of $60,000 to $70,000.

After completing this series of acquisitions, Canggu will completely transform into a professional cryptocurrency mining company. The company's future development direction includes diversified businesses such as hash power leasing and cloud hosting, which will help smooth out profit fluctuations caused by the volatility of Bitcoin prices.

From an investment perspective, the prospects for Cangu are quite promising. Once the company completes the acquisition of a total of 50 Eh/s of computing power in March 2025, it will become the largest mining company among publicly listed companies in the United States. In comparison, the largest mining company in North America currently has self-operated computing power of 46 Eh/s and a market capitalization of $7.9 billion.

According to the relatively conservative valuation standard in the industry (110 million USD/Eh), Cangu's potential market value after completing the full acquisition could reach 5.5 billion USD. Considering the company's current market value of only 720 million USD, this means there could be a growth potential of 3.9 to 6.6 times in the future.

Overall, Canggu is in a critical transformation period, and its layout in the cryptocurrency mining field may bring significant growth potential to the company. However, investors should also be aware that the high volatility of the cryptocurrency market may affect the company's short-term performance.