Cango Reports $452.8M Net Loss in First Year of Industrial Bitcoin Mining

First Full Year of Mining Delivers Massive Losses

Cango has released its financial results for 2025, revealing a net loss of $452.8 million. Revenue for the period totaled $688.1 million, with the vast majority — $675.5 million — coming directly from bitcoin mining operations.

Over its first complete year of industrial-scale operations, Cango produced 6,594.6 BTC — roughly 18 coins per day on average. CFO Michael Zhang attributed the loss to one-time costs associated with the company's business transformation and broader market volatility.

Operating expenses exceeded $1.1 billion. The largest cost items included:

• Depreciation of mining equipment — $338.3 million;
• Revaluation of bitcoin-collateralized loans — $96.5 million.

The fourth quarter proved particularly painful: the company lost $285 million on revenue of $179.5 million against operating expenses of $456 million. The cost of mining a single BTC surged to $106,251, while bitcoin's market price hovered around $73,900 — rendering mining deeply unprofitable.

Cango's stock dropped 14.4% following the earnings release. Over the past year, shares have declined by more than 60%.

Why This Matters

Cango's predicament illustrates a structural crisis engulfing the bitcoin mining industry. Following the latest halving and a prolonged decline in cryptocurrency prices, mining costs have exceeded market value for many operators. The gap between Cango's production cost ($106,251 per BTC) and the market price ($73,900) makes traditional mining economically unviable and is forcing major players to fundamentally rethink their business models.

The trend of miners pivoting from cryptocurrency production to servicing AI workloads is accelerating across the sector, and Cango is the latest high-profile example of this shift.

Reserve Liquidation and the AI Pivot

In February 2026, Cango sold 4,451 BTC to reduce its debt burden and shore up its balance sheet. In March, the company disclosed that it had taken 30% of its hashrate offline.

Cango's strategy has undergone a fundamental transformation: rather than accumulating and mining bitcoin, the company now treats BTC as a treasury asset to fund new business verticals. CEO Paul Yu indicated that Cango is moving toward AI infrastructure. Near-term plans include deploying modular container-based solutions designed for neural network computing tasks.

The shift toward artificial intelligence has become one of the most prominent trends among former mining-focused companies. Demand for high-performance computing (HPC) continues to grow, and miners possess infrastructure well-suited to these workloads. AI hosting also generates significantly higher margins than digital asset mining, which has become unprofitable following the last halving and the extended drawdown in crypto prices.

TeraWulf Ramps Up Debt Financing for HPC Expansion

TeraWulf is pursuing a similar strategy, steadily increasing its debt financing to support a transition toward high-performance computing. The firm has secured a $500 million credit facility with a one-year term, with proceeds earmarked for the construction of a data center in Hayesville, USA.

By the end of February 2026, TeraWulf had completed fundraising totaling approximately $6.5 billion. The company's total contracted HPC infrastructure capacity now stands at 522 megawatts of critical IT load, distributed between the Lake Mariner and Abernathy facilities.

TeraWulf's aggressive debt-funded expansion underscores how seriously major mining industry players are betting on AI computing as their primary revenue driver in the years ahead.