Cango Faces Major Losses Amid Rising Bitcoin Mining Expenses
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Cango Inc. has reported a staggering net loss of $285 million for the fourth quarter of 2025, as escalating costs associated with Bitcoin mining overshadowed revenue gains. The company’s recent earnings report highlighted significant financial challenges experienced during this period.
During the fourth quarter, Cango generated $179.5 million in revenue, with $172.4 million derived specifically from Bitcoin mining activities. However, total operational costs surged to $456 million, resulting in an overwhelming financial burden.
A substantial portion of the losses was attributed to an impairment charge of $81.4 million concerning mining equipment, along with a $171.4 million loss related to the adjustment of Bitcoin-collateralized receivables. Furthermore, the overall cost of Bitcoin production increased dramatically, with expenses climbing to $106,251 per Bitcoin.
The data reveals that despite revenue growth, the bottom line was severely impacted by these impairment charges and increased operational costs as the firm expanded its mining capabilities.
Cango’s stock performance reflected the company’s financial struggles. Shares plummeted from approximately $4.50 in October to around $0.68, marking a staggering decrease of more than 84% over a six-month span.
On a yearly basis, Cango’s total revenue for 2025 reached $688.1 million, primarily from Bitcoin mining, where the company successfully mined 6,594.6 Bitcoins—averaging around 18.07 Bitcoins daily. Nonetheless, the total expenses for the year amounted to $1.1 billion, which included $338.3 million in impairment losses and $96.5 million in losses tied to fair-value adjustments.
Overall, Cango ended the year with a net loss of $452.8 million. The Chief Financial Officer noted that the losses were largely due to one-time transformation costs and fluctuations in market value.
This financial report comes during a critical transition period for Cango, which has undergone significant strategic changes in the past year. In April 2025, the company divested its traditional auto financing segment in China for $352 million to Ursalpha Digital Limited, a corporation linked to Bitmain. This transaction also included a transfer of mining capacity, pivoting Cango’s focus toward Bitcoin mining.
Additionally, the firm raised $75.5 million through equity financing earlier in the year, selling 4,451 Bitcoins for around $305 million to reduce debt levels. This capital infusion supports Cango’s vision to evolve towards artificial intelligence infrastructure, aiming to convert its mining operations into distributed computing resources for AI tasks.
The future of Cango remains uncertain, as it navigates the turbulent waters of the cryptocurrency market while trying to redefine its business model in the face of mounting operational costs and losses.
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