TheBlock
Cango reported an $81.6 million net loss for the second quarter, sending its NYSE-listed shares down more than 21% to about $1.89 on Tuesday. Revenue fell roughly 50% from the first quarter to $50.8 million, including $47.4 million from Bitcoin mining. The company mined 656 BTC during the quarter and currently holds 1,065 BTC worth roughly $82.8 million.
Why it matters
Cango is trading mining scale for unit economics. It phased out older S19 rigs and shifted some capacity to a hosted leasing model. Operating hashrate stood at 27.58 EH/s on June 30, split between 19.94 EH/s of self-mining capacity and 7.74 EH/s of leased capacity.
The smaller fleet cut Cango's average cash cost per Bitcoin mined by approximately 5% from the first quarter to around $73,313. Cango has also started hedging its BTC exposure, giving the mining business a buffer against price volatility as management shifts emphasis away from raw hashrate growth.
Market impact
The selloff puts near-term earnings damage ahead of Cango's diversification story. The company is converting its Georgia mining site to support GPU computing with up to 3 MW of capacity, and related AI infrastructure revenue is expected to start in the third quarter.
The key test is whether lower mining costs, hedging and the new GPU operation can offset the revenue lost through the scale-back. CEO Paul Yu said Cango is prioritizing "unit economics rather than scale" in its legacy Bitcoin mining business.
Frequently asked questions
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How much of Cango's Q2 revenue came from Bitcoin mining?
Cango generated $50.8 million in total Q2 revenue, including $47.4 million from Bitcoin mining.
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How was Cango's 27.58 EH/s operating hashrate divided?
The company had 19.94 EH/s of self-mining capacity and 7.74 EH/s of leased capacity on June 30.
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What lowered Cango's average cash cost per Bitcoin?
Cango phased out older S19 rigs and shifted some capacity to hosted leasing. The smaller fleet cut average cash cost about 5% from Q1 to around $73,313.
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What is Cango's Georgia mining site being converted to support?
Cango is converting the site for GPU computing with up to 3 MW of capacity. Related AI infrastructure revenue is expected to start in Q3.
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How much BTC does Cango currently hold, and is it hedging that exposure?
Cango currently holds 1,065 BTC worth roughly $82.8 million and has started hedging its BTC exposure to buffer price volatility.
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