Cango (CANG) experienced a devastating inaugural year in the Bitcoin mining industry. The firm disclosed a 2025 annual net loss totaling $452.8 million, despite generating $688.1 million in overall revenue — with $675.5 million stemming from mining operations. Operating expenses completely overshadowed revenue generation.
The fourth quarter of 2025 painted an equally grim picture. While revenue reached $179.5 million during this period, total operating expenses exploded to $456.0 million. This created a quarterly net deficit of $285 million.
The primary culprits were substantial non-cash charges. Mining equipment impairment losses totaling $81.4 million, combined with a $171.4 million loss from fair-value adjustments on Bitcoin-backed receivables, accounted for the majority of the damage. Additionally, comprehensive mining costs climbed to $106,251 per BTC during Q4.
CFO Michael Zhang attributed the losses primarily to one-time transformation expenses and market-driven fair-value recalibrations.
Throughout 2025, Cango successfully mined 6,594.6 Bitcoin — averaging approximately 18.07 BTC daily. However, total operating expenses reached $1.1 billion, which included $338.3 million in mining equipment impairment charges.
The organization has been strategically repositioning its business model. In April 2025, Cango divested its traditional China-based auto financing operations for $352 million to Ursalpha Digital Limited, a Bitmain-affiliated entity. This transaction included a transfer of 32 exahashes per second in mining capacity, effectively transforming Cango into a pure-play Bitcoin mining operation.
Now another transformation is underway. In February 2026, Cango secured $75.5 million through equity financing and liquidated 4,451 BTC for approximately $305 million to reduce financial leverage. CEO Paul Yu stated the company is “advancing our pivot to become an AI infrastructure provider.”
This new strategic direction includes a corporate rebrand: EcoHash. The strategy involves repurposing existing computing and energy infrastructure for AI inference applications.
Cango is traveling a familiar route. Following Bitcoin’s April 2024 halving event that reduced block rewards by 50%, mining companies universally began reassessing their energy-intensive infrastructure. AI computing demand provided an alternative revenue opportunity.
Bitfarms, Hut 8, Riot Platforms, and Core Scientific have all executed similar strategic pivots. Core Scientific’s acquisition by CoreWeave in a $9 billion transaction last year represented one of the strongest indicators that AI companies view miners’ energy agreements as strategic assets.
Broader market conditions haven’t provided any relief. Bitcoin dropped beneath $90,000 in November 2025, declining nearly 30% from its October high above $126,000. By March 2026, it was trading around $73,700.
CANG shares have mirrored this downward pressure. The stock declined from approximately $4.50 on October 1, 2025 to about $1.50 by year’s end. Currently, shares are trading at $0.68 — representing a devastating decline exceeding 84% over six months.
The company produced 6,594.6 Bitcoin throughout 2025 at an all-in production cost of $106,251 per BTC in Q4, a threshold that provided minimal profit margins even before accounting for substantial impairment charges.
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