Cango (CANG) Stock Plummets 84% as Company Abandons Bitcoin Mining for AI

TLDR

Table of Contents

Cango (CANG) reported a staggering $452.8 million net loss for 2025, even with $688.1 million in total revenue
The fourth quarter delivered a $285 million loss, fueled by $81.4M in mining equipment impairments and $171.4M in Bitcoin-backed receivable fair-value losses
In February 2026, the firm liquidated approximately $305 million in Bitcoin holdings to reduce outstanding debt
The company is abandoning Bitcoin mining in favor of AI infrastructure, operating under the rebranded name EcoHash
CANG shares have plummeted over 84% during the past six months, currently hovering around $0.68

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.

Cango Inc., CANG

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.

Cango’s Shift to AI

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.

Stock Decline

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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