Cango Inc.

Cango reported first-quarter 2026 total revenue of $102 million, including $98.4 million from Bitcoin mining. It mined 1,266.1 Bitcoin, with average cash cost to mine of $76,928 per Bitcoin and all-in cost of $99,747 per Bitcoin; total revenue was down about 43% sequentially versus Q4 2025. Cost of revenue excluding depreciation was $99.6 million, depreciation was $29.4 million, G&A was $7.2 million, impairment loss on mining machines was $49 million, and loss on disposal of mining machines was $20.3 million. Loss from changes in fair value of receivable for Bitcoin collateral was $151.8 million, operating loss was $254.4 million, and net loss from continuing operations was $261.1 million. Adjusted EBITDA was a loss of $154.1 million. As of March 31, cash and cash equivalents were $7.2 million, cryptocurrencies were $7.9 million, receivables for Bitcoin collateral were $68.2 million, and long-term debt was $30.6 million, down from $557.6 million at year-end. For the next period and full year, management did not give formal revenue or EPS guidance; instead, it said mining will continue to prioritize margin and cash flow, hash rate may fluctuate modestly as older S19 units are retired, and AI revenue is expected to begin in the second half of 2026.

The CEO framed Q1 as a transition quarter shaped by industry headwinds and emphasized that Cango is moving from scale-focused mining toward a more resilient operating model. He highlighted fleet upgrades, lower-cost geographies, and temporary revenue-sharing hosting arrangements as ways to reduce operating risk and protect cash flow. He also said the company is advancing EcoHash as a long-term AI infrastructure opportunity, but in a disciplined, phased way.

The CFO said the biggest financial pressure came from the Bitcoin price decline and related noncash items, including a $49 million mining-machine impairment and a $151.8 million fair-value loss on Bitcoin collateral receivables. He pointed to lower operating costs as the result of cutting back higher-cost hash rate, with cost of revenue excluding depreciation falling to $99.6 million from $155.3 million in Q4 2025. He also emphasized balance-sheet repair: cash was $7.2 million, long-term debt fell to $30.6 million from $557.6 million, and the company reduced leverage by selling some Bitcoin and repaying related-party loans.

Analysts focused on whether cost savings can continue, whether hash rate will keep falling, and how the leasing/revenue-sharing model works. Management said cost reductions came mainly from retiring S19 miners, adding more efficient S21 machines, shifting hash rate to lower-power-cost regions, and using temporary revenue-sharing at higher-cost sites. On the leasing model, they said the site owner covers power, maintenance, and operating expenses while Cango receives a share of mining revenue, which helps avoid mining at a loss and protects cash flow. They also said the BTC treasury approach has changed from ‘mine and hold’ to a more dynamic balance between liquidity, market price, operating needs, and debt levels, and they expect AI revenue to begin in the second half of 2026.