Mining company Cango Inc has released its financial results for the fourth quarter of 2025, reporting a net loss of $285 million. Despite an increase in revenue, the company’s financial outcome remained negative due to a significant rise in expenses and asset write-offs.
This is reported by Finway
Rapid Increase in Expenses and Losses
Cango’s total revenue for the quarter reached $179.5 million, with the majority—$172.4 million—coming from Bitcoin mining. However, the company’s operating expenses amounted to $456 million, significantly exceeding its revenues.
Key factors contributing to the increase in expenses included a write-off of mining equipment totaling $81.4 million and a loss of $171.4 million related to changes in the fair value of receivables secured by Bitcoin. For the year 2025, the company reported a net loss of $452.8 million on revenue of $688.1 million. Approximately 6,594 BTC were mined over the year, averaging about 18 Bitcoins per day.
Mining costs in the fourth quarter of 2025 reached $106,251 per coin. This significant increase in expenses is attributed to the scaling of operations, which negatively impacted the company’s financial performance.
“Our financial strategy focuses on optimizing our balance sheet to reduce debt levels through a revised treasury management policy for Bitcoin operations and liquidity management,” said Cango’s CFO Michael Zhang.
Business Transformation and Stock Decline
In 2025, the company completed the sale of its auto lending division for $352 million and fully shifted its focus to Bitcoin mining. Cango gained access to a hash rate of 32 EH/s and began actively increasing its computing power.
In February 2026, the company raised an additional $75.5 million through a stock offering. To reduce its debt burden, Cango also sold 4,451 BTC for approximately $305 million. Additionally, the company announced plans to leverage its infrastructure for artificial intelligence tasks, distributing its resources between Bitcoin mining and providing services for the AI industry.
However, despite the business transformation, investors have reacted skeptically to the changes. Since October 2025, Cango’s stock has fallen nearly 85%—from $4.50 to $0.68. As of now, the company’s pre-market quotes are holding at $0.59, with a market capitalization of around $208 million.
Amidst the challenging market situation, analysts note that the survival of mining companies may depend on tapping into Bitcoin reserves.