The bitcoin miner took a series of major write-offs last year, many in the fourth quarter, and received some major new investment to shore up its finances heading into a new chapter
image credit: Bamboo Works
Key Takeaways:
- Cango recorded a $622 million loss last year, much of that from write-downs and other charges, but remained EBITDA positive for the period
- The company has validated and is now preparing to scale up a new business that converts idle bitcoin mining space to use for high-performance AI computing
When the history books are written, the end of 2025 and beginning of 2026 are likely to be remembered as a pivotal time for Cango Inc. (NYSE:CANG). If current trends continue, history will show that’s when the company began to sharply scale back its year-old bitcoin mining business and race full throttle into a newer, more stable business providing high-performance computing (HPC) services for AI companies.
That newer business has taken some key steps forward lately, including the establishment of a U.S.-based subsidiary led by an industry veteran experienced in the type of distributed computing that will become Cango’s new focus. The company said it has also validated a “plug-and-play” model that allows for quick conversion of former bitcoin mining space into capacity usable for HPC clients, many of those smaller businesses running AI applications.
Cango discussed such a move as early as the middle of last year, back when bitcoin was still trading near record highs. But back then it portrayed the shift as more gradual, with bitcoin mining and HPC services serving as the company’s dual engines.
Fast forward to the present, when Cango’s latest quarterly report for the fourth quarter of 2025 shows the transformation has taken on sudden urgency, as the company shores up its balance sheet to prepare for its new chapter. That financial cleanup became necessary following a plunge that saw Cango’s bitcoin holdings lose half of their value in a matter of months, as the cryptocurrency tumbled from a record high of about $124,000 last October to a trough of about $63,000 in February.
Cango revealed the extent of its internal cash-crunch in its latest report, and detailed steps it took to strengthen its …