TLDR
- Cango (CANG) recorded a staggering $452.8 million net loss for the 2025 fiscal year, even with $688.1 million in total revenues
- The fourth quarter alone delivered a $285 million deficit, fueled by $81.4M in mining equipment impairments and $171.4M in Bitcoin-backed receivable losses
- Approximately $305 million in Bitcoin holdings were liquidated in February 2026 to reduce outstanding obligations
- The firm is abandoning Bitcoin mining operations to focus on AI computing infrastructure as EcoHash
- Share prices have plunged over 84% across the last six months, currently hovering around $0.68
Cango (CANG) endured a devastating inaugural year in the Bitcoin mining sector. The corporation disclosed a 2025 annual net deficit of $452.8 million, despite generating $688.1 million in total revenues — with $675.5 million derived from mining activities. Operational expenses completely eroded the company’s top-line performance.
The fourth quarter of 2025 mirrored this troubling pattern. Quarterly revenues reached $179.5 million, yet total operational expenditures exploded to $456.0 million. This resulted in a devastating $285 million quarterly loss.
Non-cash accounting adjustments delivered the heaviest blows. The company absorbed an $81.4 million write-down on mining hardware and suffered a $171.4 million hit from fair-value fluctuations in Bitcoin-backed receivables. Comprehensive mining costs per Bitcoin also climbed to $106,251 during Q4.
CFO Michael Zhang attributed the deficits primarily to one-time transformation expenses and market-driven valuation adjustments.
Throughout 2025, Cango successfully mined 6,594.6 Bitcoin — averaging approximately 18.07 BTC daily. However, aggregate operating expenses reached $1.1 billion, which included $338.3 million in mining equipment impairment charges.
Cango’s Shift to AI
The organization has been strategically repositioning its operations. During April 2025, Cango divested its traditional Chinese automotive financing division for $352 million to Ursalpha Digital Limited, a Bitmain-affiliated entity. This transaction included a transfer of 32 exahashes per second in mining capability, effectively transforming Cango into a pure-play Bitcoin mining operation.
Now the company is pivoting once more. During February 2026, Cango secured $75.5 million through equity financing and liquidated 4,451 BTC for approximately $305 million to decrease financial leverage. CEO Paul Yu stated the organization is “progressing our transformation into an AI infrastructure provider.”
This new strategic direction includes a corporate rebrand: EcoHash. The strategy involves repurposing existing computational and energy infrastructure for artificial intelligence inference operations.
Cango is traveling a familiar route. Following Bitcoin’s April 2024 halving event that reduced block rewards by 50%, mining companies globally began reassessing their energy-intensive infrastructure. Artificial intelligence demand provided an alternative application.
Bitfarms, Hut 8, Riot Platforms, and Core Scientific have all pursued similar strategies. Core Scientific was purchased by CoreWeave in a $9 billion transaction last year — representing one of the strongest indications that AI companies value miners’ power contracts as strategic resources.
Stock Decline
Broader market conditions have compounded the challenges. Bitcoin dropped below $90,000 during November 2025, declining nearly 30% from its October high above $126,000. By March 2026, it was trading near $73,700.
CANG shares have mirrored this downward trajectory. The stock declined from approximately $4.50 on October 1, 2025 to roughly $1.50 by year-end. Currently, shares trade at $0.68 — representing a collapse of more than 84% over six months.
The organization mined 6,594.6 Bitcoin throughout 2025 at an all-in expense of $106,251 per BTC during Q4, a threshold that left minimal profit margins even before accounting for impairment losses.
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