Canggu: Major Transformation and Potential Value Analysis

Recently, Cangu Company has issued three important announcements, marking a significant shift in its business direction. First, the company has invested $256 million to acquire operating cryptocurrency mining equipment with a capacity of 32Eh/s. Second, it plans to raise an additional $144 million through the issuance of stocks to acquire another 18Eh/s of operating mining equipment. Finally, the company produced a total of 393 bitcoins in November.

These measures are worth analyzing in depth:

1. The 32Eh/s mining equipment acquired in the first phase is distributed across five countries, including the United States, the Middle East, and Africa. These devices are primarily Bitmain's flagship S19 series miners, which are expected to have about 4 years of depreciation left. The shutdown price per Bitcoin is approximately $70,000, which includes the hosting operational costs.

2. The second phase plans to acquire 18Eh/s of operational mining equipment, with funds raised through a targeted stock issuance to a group of 9 natural persons. This transaction is expected to be completed in March 2025, with the seller being Golden TechGen (GT).

3. The company has also signed a supplementary agreement as an incentive. If the market value of Cangu reaches a specific level for 30 consecutive trading days within the next 30 months, the company will issue additional shares worth $97.1055 million to the aforementioned 9 investors.

4. Despite the recent significant rise in Bitcoin prices, the acquisition cost has largely remained at the level of $60,000 to $70,000 per Bitcoin due to the company's earlier agreement with the project party, which can be regarded as a par value acquisition.

5. After the completion of this acquisition, Cangu will completely transform from a car dealership to a self-operated mining company. In the future, the company plans to further expand its business scope, including computing power leasing and cloud hosting services, in order to balance the impact of Bitcoin price fluctuations on the company's profits.

From an investment perspective, when Canggu completes the acquisition of the remaining 18Eh/s project in March 2025, its total operational hash rate will reach 50Eh/s, making it likely to become the largest mining company among publicly traded companies in the United States. Currently, the valuation situations of other major mining companies in North America are as follows: one company has a self-operated mining power of 46Eh/s and a market capitalization of $7.9 billion, equivalent to $1.7 million/Eh; another company has a self-operated mining power of 32Eh/s and a market capitalization of $3.6 billion, approximately $1.1 million/Eh.

Considering that the shutdown price of Cangu is relatively high, we can use $110 million/Eh as a valuation benchmark. Based on this calculation, before the completion of the second batch of acquisitions, Cangu's market value should reach $3.52 billion; after the acquisition is completed, the market value could reach $5.5 billion. Compared to the current market value of only $720 million, Cangu's stock price seems to be severely undervalued, with potential growth space of 3.9 to 6.6 times in the future.