Key Highlights
- Cango reports annual deficit of $452M despite achieving $688M in total revenue.
- Mining operations produced 6,594 Bitcoin throughout 2025.
- Fourth quarter saw increased production but costs surpassed $106K per coin.
- Company liquidated $305M worth of Bitcoin holdings to fund debt repayment and AI initiatives.
- Strategic transition underway from crypto mining to artificial intelligence computing.
Cango Inc. (CANG) shares experienced downward pressure following the release of financial results showing significant losses throughout its inaugural year as a major cryptocurrency mining operation. While the company achieved impressive revenue figures, substantial expenditures and accounting write-downs resulted in a considerable annual shortfall. Trading around $0.63 per share, management has announced strategic initiatives focused on artificial intelligence infrastructure development.
Revenue Surge Accompanied by Mounting Financial Deficits
For the 2025 fiscal year, Cango Inc. disclosed total revenues reaching $688.1 million following aggressive expansion of its worldwide mining operations. However, the company simultaneously recorded a net deficit of $452.8 million. Company executives pointed to transitional costs and fair-value accounting measurements as primary contributors to the negative bottom line.
Cryptocurrency mining activities contributed $675.5 million to overall revenues, accounting for over 98% of the company’s total income stream. Throughout the year, Cango’s operations yielded 6,594.6 Bitcoin, maintaining a daily average production rate of approximately 18 coins. Mining output showed particular strength during the year’s final quarter as the company broadened its presence across multiple global jurisdictions.
Total operational expenditures for 2025 reached $1.1 billion, driven by equipment acquisition costs and asset valuation adjustments. The fourth quarter alone accounted for $456 million in expenses, creating significant headwinds for profitability. Additional financial pressure came from an $81.4 million impairment charge related to mining equipment and substantial collateral valuation declines.
Enhanced Output Challenged by Escalating Operational Expenses
During the final three months of 2025, the company achieved production of 1,718.3 Bitcoin. Daily average output improved modestly to 18.68 coins during this period. However, the cost structure associated with mining operations continued its upward trajectory throughout the network.
Cango disclosed that average direct mining expenses totaled $79,707 per Bitcoin when excluding equipment depreciation charges. This figure rose to $84,552 per coin during the fourth quarter as operating costs expanded. When accounting for all costs, the company’s comprehensive mining expense averaged approximately $97,272 per Bitcoin annually.
When depreciation and additional cost factors were incorporated, fourth quarter all-in expenses exceeded $106,000 per Bitcoin. This compression in profit margins contributed to a quarterly EBITDA loss of $156.3 million. Despite the fourth quarter setback, annual adjusted EBITDA managed to reach $24.5 million, supported by stronger performance in earlier periods.
Company Repositions Toward AI Computing Services
Executive leadership has initiated a strategic reorientation, directing computational resources toward artificial intelligence infrastructure and high-performance computing applications. In a significant liquidity move, the company recently divested approximately $305 million in Bitcoin holdings. This transaction reduced the company’s digital currency reserves by roughly sixty percent.
Proceeds from the Bitcoin sale were allocated toward debt retirement and financing infrastructure enhancements for new computing operations. The company has outlined plans to deliver AI inference capabilities through its EcoHash computing platform. Initial facility conversion projects are currently in progress at multiple operational locations.
This strategic pivot mirrors a growing industry trend among cryptocurrency miners transitioning toward data center operations and AI-focused workloads. Core Scientific represents another prominent example of this shift, with similar Bitcoin liquidation plans to support comparable expansion initiatives. Following termination of its ADR program, Cango now maintains a direct listing on the New York Stock Exchange.
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