Cango Inc. Receives Positive Buy Rating Fueled by Asset-Light Mining and AI Potential

Cango Inc. Receives Buy Rating

Cango Inc. (NYSE: CANG), a company specializing in the Bitcoin mining sector, has recently caught the attention of investors following a bullish report from Greenridge Capital. The firm has initiated coverage of Cango with a buy rating and has set a target price of $4.00. This positive outlook stems from Cango’s unique asset-light mining model and its ambitions in artificial intelligence (AI).

According to Greenridge's analysis, Cango is currently undervalued, trading below its asset value despite holding significant resources. The company's assets include liquid cash reserves and over $600 million in Bitcoin, maintained under a strict HODL strategy. Furthermore, Cango boasts a globally distributed mining capability with 50 EH/s and a 50MW data center located in Georgia, USA, which was acquired in the third quarter of 2025.

Positive Financial Prospects

The report emphasizes Cango’s strategic initiatives aimed at reducing costs, reflecting a disciplined operational approach. Greenridge believes that the company is well-positioned to seize future opportunities, given its solid cash flow and strategic planning. Cango is actively working on diversifying its revenue streams while enhancing profitability through a significant focus on controlling its power supply, a critical component for future AI data center or Bitcoin mining operations.

Energy + HPC Plan

Cango's ambitious Energy + HPC plan will expand its footprint into flexible energy and high-performance computing projects. These ventures are expected to yield higher profit margins and generate substantial cash flows. Two pilot projects are currently in the works: a solar generation and storage facility in Oman, and a 150MW power generation project in Indonesia, which could expand to 300MW in the future based on demand and operational success.

Management plans to provide further updates about these initiatives in the coming months, which could clarify Cango's growth trajectory.

Valuation Insights

Greenridge Capital's target price of $4.00 is derived from a blended valuation approach using both an EV/Adjusted EBITDA multiple of 7x, applied to an estimated 2026 adjusted EBITDA of $335.4 million, and a P/E multiple of 15x based on an estimated diluted EPS of $0.34 for 2026. Both multiples are considered conservative when compared to industry peers. Importantly, this valuation does not yet account for the value of Cango's burgeoning energy infrastructure projects, which could unlock further value as they reach key milestones.

Overview of Cango Inc.

Cango Inc., founded in November 2024, primarily operates within the Bitcoin mining industry, extending its reach across North America, the Middle East, South America, and East Africa. The company stepped into the cryptocurrency space following the advancements in blockchain technology and its growing commitment to diversifying its overall business model. Additionally, Cango operates AutoCango.com, an online platform simplifying international used car exports from China for global customers.

For ongoing updates, stakeholders can visit Cango’s official website at www.cangoonline.com.

Safe Harbor Statement

This summary includes forward-looking statements subject to the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements can be recognized by terms such as “will,” “expects,” and “anticipates.” Actual results may differ due to various risk factors related to Cango’s strategies, expansion plans, and overall market conditions. For more comprehensive risks and disclosures, refer to the latest filings with the SEC.