TLDR
- Cango reports annual deficit of $452M while generating $688M in total revenue.
- Mining operations produced 6,594 Bitcoin throughout 2025.
- Production costs surpassed $106K per Bitcoin in Q4, squeezing margins.
- Company liquidated $305M worth of Bitcoin holdings for debt reduction and infrastructure investment.
- Strategic transition underway toward AI-focused computing services.
Shares of Cango Inc. (CANG) experienced downward pressure following the disclosure of significant financial losses throughout its initial complete year operating as a major cryptocurrency mining entity. Despite achieving robust top-line figures, the organization faced considerable annual shortfalls stemming from elevated operational expenditures and accounting-related modifications. Trading activity hovered around $0.63 per share as leadership detailed future initiatives centered on artificial intelligence computing capabilities.
Revenue Climbs While Financial Deficits Deepen
For the full year 2025, Cango Inc. disclosed total revenues reaching $688.1 million following aggressive expansion of its worldwide mining infrastructure. However, the organization simultaneously recorded net losses totaling $452.8 million across the identical timeframe. Company executives pointed to transformation-related expenditures and fair-value accounting modifications as primary contributors to the negative results.
Cryptocurrency mining activities accounted for $675.5 million of overall revenues, comprising over 98% of the firm’s total income stream. Throughout the year, operations yielded 6,594.6 Bitcoin, maintaining an approximate daily average of 18 digital coins. Mining velocity increased notably during the year’s final quarter as the company broadened its presence across multiple international territories.
Total operational expenditures for the annual period reached $1.1 billion as equipment-related costs and asset valuation declines accumulated. The fourth quarter alone witnessed expenses climbing to $456 million, creating significant profitability challenges. Additionally, the firm acknowledged an $81.4 million impairment charge related to mining equipment alongside substantial collateral valuation reductions.
Enhanced Output Confronts Escalating Operational Expenses
During the concluding three-month period, the company elevated its production volume to 1,718.3 Bitcoin. Daily average output experienced modest growth to 18.68 coins throughout the quarter. Notwithstanding the improved production metrics, mining-related expenses continued their upward trajectory across the operational network.
Cango disclosed average mining expenditures of $79,707 per Bitcoin when excluding equipment depreciation factors. This average climbed to $84,552 during the fourth quarter as operational costs broadened. Comprehensive mining costs, including all factors, averaged approximately $97,272 per Bitcoin annually.
When incorporating depreciation and additional accounting adjustments, fourth-quarter costs surpassed $106,000 per Bitcoin. Consequently, profit margins contracted significantly, with the company posting a quarterly EBITDA deficit of $156.3 million. Nevertheless, annual adjusted EBITDA achieved $24.5 million attributable to stronger performance during earlier periods.
Corporate Transformation Embraces AI Computing Services
Company leadership has initiated a strategic reallocation of computational resources toward artificial intelligence infrastructure and advanced computing service offerings. Recently, the firm liquidated approximately $305 million in Bitcoin holdings to bolster financial flexibility. This divestiture decreased digital asset reserves by roughly sixty percent.
Proceeds from the cryptocurrency sale were allocated toward debt obligation settlement and financing infrastructure enhancements for emerging computing facilities. The organization currently intends to launch AI inference capabilities through its EcoHash computing platform. Initial facility modification projects have commenced at multiple operational locations.
This strategic direction mirrors a widespread industry movement among mining enterprises toward data center operations and AI-centric workloads. Notably, Core Scientific has similarly announced substantial Bitcoin liquidation plans to support comparable expansion initiatives. Cango currently maintains its New York Stock Exchange listing following termination of its ADR program and transition to a direct listing arrangement.
