#China #Hong Kong #financial results #Bitcoin Mining #Cango Inc.

Cango Inc. Reports Second Quarter 2025 Financial Results

Cango Inc. (NYSE: CANG) has released its unaudited financial results for the second quarter ending June 30, 2025. This quarter is significant as it marks the aftermath of the company's strategic transformation towards becoming a key player in the Bitcoin mining sector.

As of June 30, Cango's total mining capacity has surged to 50 EH/s, a substantial increase driven mainly by the acquisition of 18 EH/s in June. This expansion is crucial, reflecting the company's commitment to scaling its operations rapidly. Furthermore, in May, Cango completed the divestiture of its assets in China for a remarkable $352 million, bolstering its liquidity and allowing the company to pursue ongoing strategic initiatives with ease.

In Q2 2025, Cango reported total revenues of RMB 1.0 billion (approximately $139.8 million). A remarkable RMB 989.4 million, or about $138.1 million, of this revenue was generated from Bitcoin mining operations.

Cango's adjusted EBITDA for this quarter stood at RMB 710.1 million (or $99.1 million), showcasing the core strength of its Bitcoin mining business, even amid strategic shifts. During this quarter, a total of 1,404.4 Bitcoins were mined, with an average mining cost of about $83,091 per Bitcoin—while the total costs of mining reached $98,636 each. Since its entry into the Bitcoin mining industry last November, Cango has mined a total of 3,879.2 Bitcoins.

Unfortunately, the financial results also reflect a net loss, primarily resulting from a one-off loss linked to discontinued operations and a non-cash impairment loss associated with mining equipment that was settled through equity. Notably, this impairment was prompted by the substantial appreciation in Cango's stock price between the signing and delivery of the equipment. Excluding these charges, the adjusted EBITDA still highlights robust company performance, emphasizing the company's resilience despite the losses related to one-off events.

A Word from Leadership

CEO Paul Yu expressed optimism regarding the company’s positioning. He pointed out, "The second quarter of 2025 signifies a pivotal moment as we unveil full strides post our strategic overhaul. In just nine months, we have successfully solidified our standing as one of the world's largest Bitcoin miners. Our growth trajectory is propelled by an asset-light approach that minimizes initial capital investment while enhancing operational scalability."

Yu also noted that the acquisition of 18 EH/s contributed significantly to improving Bitcoin production by 44% in July to 650.5 Bitcoins compared to June. This improvement not only underscores operational expansion but also sets a strong foundation for both organic growth and strategic acquisitions in the future.

In line with enhancing operations, Cango recently acquired a 50 MW mining facility in Georgia, USA, marking a pivotal step in building a diverse and energy-secure infrastructure for its mining endeavors. This acquisition is expected to significantly reduce power costs while providing invaluable operational expertise for upcoming high-performance computing initiatives.

CFO Michael Zhang echoed Yu's sentiments regarding revenue and operational performance, affirming that the company generated noteworthy revenue this quarter, demonstrating the effectiveness of its business transformation strategy. Excluding non-cash costs, adjusted EBITDA reached a remarkable RMB 710.1 million—a substantial improvement from just RMB 5.4 million in the previous year's comparable quarter, highlighting a positive trajectory for Cango’s mission.

Financial Results Summary

For the second quarter of 2025, the revenue breakdown can be summarized as follows:

• - Total Revenues: RMB 1.0 billion ($139.8 million)
• - Bitcoin Mining Revenue: RMB 989.4 million ($138.1 million)
• - Automobile Trading Revenue: RMB 12.4 million ($1.7 million)

Despite a total operating cost of RMB 2.3 billion ($320.3 million), the majority stemming from Bitcoin mining operations, the company remains committed to optimizing its performance.

The roadmap ahead for Cango is ambitious, focusing on optimizing its mining capacity, enhancing energy and high-performance computing capabilities, and strategically positioning itself in growing markets to capitalize on emerging opportunities. The company plans to transition its financial reporting from Renminbi to U.S. dollars, effective from the upcoming quarterly report.

In conclusion, while the quarter showcased some losses tied to transformation efforts, the future for Cango Inc. appears promising, with robust strategies aimed at maximizing growth potential within a rapidly evolving industry.