Cango Reports Massive Bitcoin Mining Losses in Fourth Quarter 2025 in United States

Cango Inc., the publicly traded Bitcoin mining company, has revealed a staggering net loss of $285 million in the fourth quarter of 2025.

Despite generating $179.5 million in revenue, the company’s expansion efforts were weighed down by large impairment charges, fair-value losses, and soaring production costs.

Most of the revenue—$172.4 million—came directly from Bitcoin mining, but it wasn’t enough to offset mounting expenses, which hit $456 million for the quarter.

The Factors Behind the Loss

The losses are a combination of several financial hits.

Cango recorded an $81.4 million impairment on its mining machines and a $171.4 million loss linked to fluctuations in the fair value of Bitcoin-collateralized receivables.

In addition, mining costs climbed sharply, with all-in expenses reaching $106,251 per Bitcoin.

The figures highlight how revenue gains from scaling the mining business can be quickly negated by machinery depreciation, market volatility, and operational costs.

Share Price Plunge Reflects Investor Concerns

Investors have clearly taken notice. Google Finance data shows Cango shares dropped from about $4.50 at the beginning of October 2025 to roughly $1.50 by the end of December, continuing their slide to $0.68 at the time of reporting.

This marks an 84% decline over six months, reflecting concerns over profitability and the challenges of large-scale Bitcoin mining in a volatile market.

Annual Losses Tell a Bigger Story

For the full year, Cango reported $688.1 million in revenue, with $675.5 million coming from Bitcoin mining.

The company mined 6,594.6 BTC in 2025, averaging roughly 18 BTC per day.

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However, operating costs ballooned to $1.1 billion, including $338.3 million in mining machine impairments and $96.5 million in fair-value losses.

The company ended 2025 with a total net loss of $452.8 million, driven largely by one-time transformation costs and market-driven accounting adjustments, according to CFO Michael Zhang.

Cango’s Strategic Shift Toward Bitcoin and AI

Cango’s financial turbulence comes amid a major pivot away from its legacy auto financing operations in China.

In April 2025, the company sold these operations to Ursalpha Digital Limited for $352 million, transferring 32 exahashes per second of mining capacity in the process.

The deal effectively rebranded Cango as a Bitcoin mining-focused entity.

Earlier in the year, Cango also sold 4,451 Bitcoin for $305 million and raised $75.5 million in equity financing, steps aimed at reducing debt and supporting a future pivot toward AI infrastructure.

The company plans to convert its mining operations into distributed compute capacity to support artificial intelligence workloads, signaling a long-term transformation of its business model.

Impact and Consequences

Cango’s losses underscore the inherent risks of large-scale Bitcoin mining, including volatile market prices, costly machinery, and high operational expenses.

The plunge in share price is likely to erode investor confidence and could make future capital raises more difficult.

Moreover, the shift toward AI infrastructure may require significant additional investment before it becomes profitable.

What’s Next?

Investors and analysts will be watching closely as Cango attempts to stabilize its finances and execute its AI pivot.

The company will need to manage production costs, mitigate fair-value volatility, and demonstrate that its AI plans can generate sustainable revenue.

Future quarterly reports will be crucial in determining whether this pivot can offset the challenges seen in 2025.

Summary

Cango Inc.’s fourth-quarter losses highlight the volatility and cost pressures in large-scale Bitcoin mining.

Revenue growth has been offset by impairments, market adjustments, and operational expenses, resulting in a net loss of $285 million for the quarter and $452.8 million for the year.

The company’s strategic pivot toward AI infrastructure and its shedding of legacy assets mark a major transformation, but significant challenges remain.

Bulleted Takeaways

• Cango posted a Q4 2025 net loss of $285 million despite $179.5 million in revenue
• Losses were driven by $81.4 million in equipment impairments and $171.4 million in fair-value losses
• All-in Bitcoin mining costs reached $106,251 per BTC
• Share price dropped over 84% in six months, from $4.50 to $0.68
• Full-year net loss for 2025 totaled $452.8 million
• Company sold legacy China auto financing operations and shifted focus to Bitcoin mining

• Plans are underway to pivot mining operations into AI infrastructure and distributed compute capacity