In a significant setback for the cryptocurrency mining industry, Cango Inc. has reported a staggering net loss of $285 million in the fourth quarter of 2025. The company’s earnings report, published on Monday, reveals that despite a revenue of $179.5 million, primarily from Bitcoin mining, the company was unable to offset the soaring operational costs and impairment charges.
Revenue and Costs
The breakdown of the financials shows that Cango’s Bitcoin mining revenue reached $172.4 million, a notable increase from previous quarters. However, total operating costs and expenses surged to $456.0 million. This was driven by an $81.4 million impairment on mining machines and a $171.4 million loss due to changes in the fair value of Bitcoin (BTC)-collateralized receivables. Additionally, all-in mining expenses rose to a staggering $106,251 per BTC in the quarter.
Market Impact and Share Performance
The financial strain is reflected in Cango’s stock performance. According to Google Finance data, Cango’s shares plummeted from around $4.50 on October 1 to about $1.50 by December 31, 2025. At the time of writing, the stock trades at $0.68, marking a decline of more than 84% over the past six months.
Full-Year Financials
For the full year of 2025, Cango reported a total revenue of $688.1 million, with $675.5 million coming from Bitcoin mining. The company mined 6,594.6 Bitcoin, averaging about 18.07 BTC per day. However, the total operating costs and expenses for the year reached $1.1 billion, including $338.3 million in impairment losses on mining machines and $96.5 million in fair-value losses on Bitcoin-collateralized receivables. These factors contributed to a net loss of $452.8 million for the year.
Strategic Shift and Future Plans
Cango’s financial struggles come amid a broader strategic shift. In April 2025, the company agreed to sell its legacy China auto financing operations for $352 million to Ursalpha Digital Limited, an entity linked to Bitmain. This deal included the transfer of 32 exahashes per second (EH/s) of mining capacity, effectively repositioning Cango as a publicly traded Bitcoin mining firm.
In February, Cango raised $75.5 million in equity financing after selling 4,451 Bitcoin for about $305 million to reduce leverage. The company is now focusing on repurposing its mining operations into distributed compute capacity for artificial intelligence (AI) workloads, a move that reflects the growing intersection of AI and blockchain technologies.
Looking Ahead
Despite the significant losses, Cango’s CFO, Michael Zhang, emphasized that the company remains committed to its strategic transformation. The loss, he explained, was largely driven by non-recurring transformation costs and market-driven fair-value adjustments. As the company continues to navigate the volatile crypto market and the increasing cost pressures, the shift towards AI infrastructure could be a critical factor in its future success. The next few quarters will be crucial in determining whether Cango can turn the tide and achieve profitability in the rapidly evolving landscape of Bitcoin mining and AI integration.
About the Author
