Cango releases key highlights of its 2025 Q2 financial report: strong revenue and profit performance, with a long-term focus on high-value scenarios of "AI computing power and energy synergy"

CANGO Group (CANGO) (Stock Code: CANG) released its core highlights for the Q2 2025 financial report, showing strong revenue and profitability. The two one-off accounting adjustments resulting in book losses are not substantive business losses. The company is focused on high-value scenarios of "AI computing power and energy synergy" in the long term.
 

I. Core Financial Indicators: Strong Revenue and Profitability

1. Bitcoin has become the company's core business: In the second quarter of 2025, the company achieved a total revenue of RMB 1.00 billion, of which bitcoin mining business contributed RMB 989 million, accounting for more than 98% of total revenue. After 9 months of transformation,

CANGO has become one of the world's top two mining companies in terms of computing power.

2. Profitability highlights business resilience: Adjusted EBITDA reached RMB 710 million. This indicator effectively eliminates the interference of non-operating factors and accurately reflects the true profitability and operational health of the bitcoin mining business.

3. Cost control builds competitive barriers: This quarter, the comprehensive cost was controlled at USD 98,636. Compared with similar companies in the industry, the cost advantage is significant, providing solid support for sustained profitability and risk resistance.

4. Capital reserves ensure strategic advancement: As of the end of the reporting period, the company held USD 118 million in cash and cash equivalents. Sufficient liquidity reserves provide a solid financial foundation for subsequent business expansion, strategic investment, and coping with market fluctuations.

II. Key Quarterly Events: Computing Power Breakthrough and Infrastructure Upgrade

1. Computing power ranks among industry leaders: This quarter, the company successfully reached 50 EH/s in computing power. As of June 30, 2025, this scale accounts for about 6% of the total global bitcoin network computing power, marking a key breakthrough in core production capacity and further consolidating the company's industry position.

2. Strategic acquisition optimizes operational layout: In August, the company completed the acquisition of a 50 MW mining farm in Georgia, USA. This acquisition not only effectively reduced electricity procurement costs and improved operational stability, but also acquired core infrastructure to support future business growth, laying the foundation for further expansion of computing power.

III. Core Model Interpretation: Three Competitive Advantages of the "Asset-Light Model"

The company adheres to an asset-light operation strategy with "priority strategic procurement of second-hand mining machines on racks" as the core, achieving rapid and low-cost expansion and ramp-up of computing power. The core advantages of this model are reflected in three aspects:

(1) Cost Advantage: Mining cost below market price, creating excess value for investors

Through refined operations, the company controls the comprehensive cost of mining a single bitcoin at about RMB 98,000, significantly lower than the current bitcoin market price, ensuring stable business profit margins. For investors, buying company stock is equivalent to indirectly holding bitcoin-related assets at a "cost below market price," and this cost advantage is supported by actual operational data. Compared to directly purchasing bitcoin on the secondary market, it offers higher cost efficiency.

(2) Leverage Advantage: "Dual Leverage" amplifies returns, meeting high elasticity demand

The company builds a dual leverage system of "computing power leverage + operational leverage" in business operations: On one hand, it expands computing power scale through financing methods such as bitcoin-collateralized medium- and long-term loans, achieving "computing power leverage"; on the other hand, it optimizes

capital utilization efficiency through reasonable liabilities in daily operations, achieving "operational leverage." The amplification effect of this dual leverage is superior to directly purchasing bitcoin or bitcoin ETF, maximizing the return elasticity brought by bitcoin price increases, and better matching the needs of investors seeking high returns.

(3) Asset and Equity Advantage: Efficient operation protects shareholder rights and avoids dilution risk

Compared with industry peers (such as MARA), while maintaining the same computing power scale of 50 EH/s, the company's net asset and operational asset allocation efficiency is better, and there is no need to "frequently issue new shares" to cover operating expenses. Some peers, due to weaker cost control

capabilities, need to rely on issuing new shares to ease funding pressure, resulting in severe dilution of shareholder rights; whereas the company's operating model can effectively protect shareholder interests and avoid weakening investors' actual returns due to equity dilution.

IV. Explanation of Net Loss: One-off Accounting Adjustment, Not Substantive Operating Loss

The net loss shown in this quarter's financial report mainly stems from two one-off accounting adjustments. These adjustments temporarily lower book profits but lay a solid foundation for future business expansion, representing strategic investment for long-term growth rather than substantive operating losses.

Specific reasons are as follows:

1. Non-cash loss from 18E mining machine delivery: The pricing of this mining machine transaction was locked in October 2024, with the corresponding additional share price at about USD 2 per ADS; as of June 30, 2025, the company's share price had nearly doubled. After revaluation at current fair value, a book loss was formed, which is listed under "impairment loss from mining machine" in the income statement.

2. One-off loss from disposal of Chinese assets: During the asset divestiture process, according to third-party professional assessment, the fair value of the relevant assets was lower than the original book value, resulting in a one-off write-down. This loss is reflected as -USD 80.89 million under "Net investment income" in the income statement.

V. Future Strategic Direction: Evolving from "Single Mining" to "Energy + HPC" Integrated Platform

The company will advance its strategic transformation in stages, gradually expanding from pure bitcoin mining business to an integrated "Energy + HPC (High Performance Computing)" service platform. In the short term (the next few quarters), it will focus on the following three key actions while also laying out long-term HPC

business:

(1) Short-term Core Actions: Consolidate Foundation, Optimize Operations

1. Maximize the value of existing computing power assets: Fully unleash the production potential of the 50 EH/s computing power cluster by improving the level of refined operation and maintenance and promoting the rotation of advanced mining machines to continuously optimize output efficiency.

2. Deepen cost control advantage: Take "reducing core costs" as a key direction, prioritize the acquisition of low-electricity-price mining farms, further compress electricity costs, and consolidate the industry's cost competitiveness.

3. Expand green electricity and energy storage business: Continue to improve the operational capability of green energy (green electricity) and energy storage projects. This not only directly reduces the electricity cost of mining business, but also accumulates experience in renewable energy management. In the future, green electricity can be used for self-consumption or external

sales, creating diversified revenue streams.

(2) Long-term Strategic Layout: Entering the HPC Field, Exploring New Growth Curves

On the premise of consolidating the short-term business foundation, the company targets high-value scenarios of "AI computing power and energy synergy" and has launched HPC pilot project planning. It is expected that specific pilot projects will be implemented in the first half of 2026, marking the company's substantial progress in transforming into an integrated "Energy + HPC" platform.

This article is contributed and does not represent the views of BlockBeats.