Cango Posts $452.8M Loss as Mining Costs Exceed $97,000 Per Bitcoin
Cango Inc. (NYSE: CANG) recorded a net loss of $452.8 million for its 2025 fiscal year, a turbulent first full year after transitioning from automotive services to bitcoin mining. The firm generated $688.1 million in revenue, with $675.5 million coming from mining 6,594 BTC. However, profitability collapsed under the weight of high operational expenses. The company's all-in cost to produce a single bitcoin averaged $97,272 for the year, escalating to $106,251 in the fourth quarter.
These unsustainable costs, combined with $338.3 million in impairment losses on mining equipment and other non-recurring charges, erased any gains from its revenue growth. The fourth quarter was particularly challenging, contributing a $285 million net loss to the annual total. The financial results reveal a business model struggling with declining mining margins, prompting a fundamental shift in corporate strategy.
Company Sells 4,451 BTC to Fund Strategic Pivot to AI
To address its financial distress, Cango sold 4,451 BTC in February 2026 to reduce debt and finance a pivot into artificial intelligence infrastructure. This move marks a significant departure from the bitcoin accumulation strategy common in the mining sector. According to CFO Michael Zhang, the firm is deploying its bitcoin as a treasury asset to "reduce the overall finance leverage and strengthen the balance sheet," creating flexibility for new investments.
CEO Paul Yu stated the company is "advancing our pivot to become an AI infrastructure provider" through its EcoHash platform, which aims to offer cost-effective AI solutions. This transition aligns with a wider industry trend where bitcoin miners are repurposing their energy-intensive infrastructure to serve the high-demand AI computing market. The move has been met with skepticism from investors, as Cango's shares have fallen over 84% in the last six months to trade at approximately $0.68.
Edgen Crypto·Mar 17 2026, 13:32
