Key Takeaways:
Cango Inc. fell more than 20 percent to about $1.89 on Tuesday after the NYSE-listed bitcoin miner reported an $81.6 million second-quarter net loss, driven by $51.4 million in non-cash impairment and disposal charges as it deliberately shrank its mining fleet.
"On the mining side, we deliberately scaled back operations as planned. That's reflected our second quarter results," Chief Executive Officer Paul Yu said on the earnings call. "On the AI side, since the end of the second quarter, we have made real progress on infrastructure and signed our first customer contract, moving that business from build-out into commercialization."
Total revenue fell roughly 50 percent sequentially to $50.8 million, with $47.4 million from bitcoin mining and $3.4 million from other sources. Cango mined 656 bitcoin during the quarter at an average cash cost of $73,313 per coin, down about 5 percent from the first quarter, as it phased out older S19 machines and shifted some capacity to a hosted leasing model. Operating hashrate stood at 27.58 EH/s as of June 30, split between 19.84 EH/s of self-mining and 7.74 EH/s of leased capacity. Adjusted EBITDA loss narrowed to $10.7 million from $154.1 million in the first quarter.
The company held 1,056 bitcoin worth roughly $82.8 million and $10.1 million in cash at quarter-end, against $31.2 million in long-term related-party debt. Management said the Georgia site converted to support up to 3 megawatts of GPU computing, with the first AI customer contract signed after June 30 and revenue expected to begin in the third quarter. Cango also launched a bitcoin hedging program, structured as short-term bitcoin-denominated loans sized to one to two months of production, which CFO Simon Tang said is "purely a risk management tool" rather than a directional bet.
The restructuring leaves Cango trading at a market capitalization near $98 million, down roughly 85 percent over the past year, with the AI pivot and hedging program now the key tests of whether the leaner fleet can convert into sustained profitability. The company said third-quarter hashrate should not change materially, though summer power curtailments in July and August could weigh on mining output.
This article is for informational purposes only and does not constitute investment advice.
