Bitmain, Cango Face Review Request From US Lawmaker Over National Security Concerns: Report

Bitmain Technologies, the world’s largest crypto mining hardware maker, and Cango (CANG) have reportedly come under scrutiny from a Republican lawmaker who warned their growing U.S. presence could pose a national security risk.

Cango’s stock edged 0.18% lower in pre-market trade on Tuesday. On Stocktwits, retail sentiment around the small-cap company moved lower, but remained in ‘bullish’ territory over the past day amid ‘high’ levels of chatter. The stock is up 13% this year and has gained more than 235% over the past 12 months. 

According to a Bloomberg report, the Representative of Iowa, Zackary Nunn, said Bitmain and Cango’s Bitcoin (BTC) mining hardware operations in the country may fall under the review of the Committee on Foreign Investment in the U.S. (CFIUS), which is headed by Treasury Secretary Scott Bessent. 

“These companies appear to be scaling operations in the U.S. through complex ownership structures and financing arrangements that may not be fully transparent to regulators or the public,” said the letter by the Representative of Iowa, Zackary Nunn, sent to Bessent last week. 

In July, it was reported that Bitmain was planning to open its first U.S. facility within the next few months. The report said that the company’s new headquarters and assembly line would either open in Texas or Florida by the end of the third quarter. According to Nunn, Bitmain is exploring direct ownership of U.S. power generation assets, which could raise “long-term strategic considerations.”

Cango, on the other hand, already has operations in the U.S. as of November last year, alongside its core global used-car export business, according to the company’s official website. Nunn estimates that its operations in the country may currently utilize over 250 megawatts (MW) of energy, with a substantial share of its operations hosted domestically.

Representatives from both Cango and Bitmain told Bloomberg that they are compliant with all U.S. laws, adding that neither is affiliated with any government or state-run enterprise. Bitmain also denied any rumours that it has plans to acquire Cango. “They are simply not correct,” the spokesperson reportedly said.

Read also: Dogecoin Price Jumps As Major Crypto Tokens Edge Higher, Bitcoin Calm At $112K In Run-Up To US Inflation Data Release

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