China-based Cango has made a significant change in its operations due to volatile conditions in the crypto market. The company earned approximately $305 million in revenue by selling a total of 4,451 Bitcoins in the first week of February. The entire amount was used to pay off a loan debt whose collateral was Bitcoin. After the sale, the amount of Bitcoin in Cango’s reserve decreased by approximately 60 percent, falling to 3,313 BTC at the end of February.
Reflection of the Cost Problem on the Financial Statement
The company’s financial data for 2025 pointed to a difficult financial picture. Cango achieved a turnover of 688.1 million dollars throughout the year; however, it posted a net loss of $452.8 million. The main reason for this loss is based on the high costs of Bitcoin mining. In the last quarter, the total cost to mine one Bitcoin reached $106,251. At that time, the market price of Bitcoin remained well below this level. It was seen that producing Bitcoin with the income generated by the company became unsustainable and debt pressure increased. While the sale enabled immediate loan closure, it was stated that much higher price levels than Bitcoin were needed for the mining activity to turn into profitability due to the continuing high cost problem.
Strategy Change Towards Artificial Intelligence
Cango began to adopt a new strategy in the face of decreasing sustainability of mining. The company plans to transform mining facilities around the world into integrated platforms with energy and AI computing capabilities. The energy infrastructure, cooling systems and intensive computing hardware of mining facilities contain the basic elements needed in artificial intelligence-based systems. In the first phase, it is aimed to prioritize the establishment of modular and container-based GPU clusters targeting small and medium-sized businesses. The company attaches importance to this area, which requires less commitment and offers a wide variety of customers, rather than the segment dominated by big technology giants.
At the beginning of this transformation process, Jack Jin, who previously held a managerial position at Zoom Communications, was appointed as the Technology Director of Cango’s artificial intelligence department. Jin’s experience in software and infrastructure is expected to contribute to the new strategic move of the company, which generally focuses on hardware.
Market Reaction and Investor Confidence
Following the financial results announced by Cango, the company’s share price decreased by 23 percent on March 23 compared to the previous day, and the shares fell to the lowest levels of the year. Investors began to take a cautious approach to the radical change in the company’s operating model and the huge loss experienced last year. Unlike companies such as Metaplanet, Strategy and Bitmine, which have been increasing their Bitcoin assets for a long time, Cango had to reduce its assets under selling pressure and turn to a new sector. Here, financial strength is considered to be the determining factor in crypto strategy.
