Cango Q2 Report: Mining Revenue Reaches $47.4 Million, Continuing to Advance Energy and AI Computing Platform Strategy
- Key Insights: Cango Inc. faced mining revenue pressure in the second quarter of 2026, recording a net loss of $81.6 million. However, through computing power optimization, declining unit costs, and the launch of a Bitcoin hedging program, the company continues to advance its diversified strategic transition from mining toward an integrated platform combining energy and AI computing.
- Key Elements:
- Total revenue for Q2 2026 was $50.8 million, of which Bitcoin mining revenue accounted for $47.4 million; the net loss of $81.6 million was primarily driven by a $42.9 million non-cash impairment of mining machines and an $8.5 million disposal loss.
- Total operational computing power declined to 27.58 EH/s, with self-operated computing power at 19.84 EH/s; the company mined 656 BTC during the quarter, with the average cash cost per Bitcoin decreasing 5% quarter-over-quarter to $73,313.
- As of period end, the company held 1,056 BTC as a digital asset reserve, with cash and cash equivalents of $10.1 million and long-term debt of $31.2 million.
- The LN mining facility in Georgia completed its AI modular retrofitting, supporting up to 3 MW of capacity, with racks and GPU hardware already in place; revenue recognition is expected in Q3.
- The company is pursuing two business models: bare-metal GPU hosting and colocation services, and has launched test nodes in Texas and the West Coast.
- A Bitcoin hedging program was initiated as a risk management tool (non-speculative), with related short positions already reflected on the balance sheet.
August 31, 2026 – Cango Inc. (NYSE: CANG, "Cango" or the "Company"), a leading Bitcoin mining company building an energy and AI computing convergence platform through its global operations, today announced its unaudited financial results for the second quarter ended June 30, 2026.
Second Quarter 2026 Financial and Operational Highlights
- Financial Performance: Despite revenue pressure from the overall mining environment, the Company continued to advance its diversification strategy through EcoHash's commercial progress and stringent cost management. In the second quarter of 2026, the Company generated total revenue of $50.8 million, with Bitcoin mining operations contributing $47.4 million as the primary revenue source. The Company recorded a net loss of $81.6 million for the quarter, primarily due to non-cash impairment and disposal losses on mining machines. As of period end, the Company held 1,056 Bitcoins as digital asset reserves, with long-term debt of $31.2 million, reflecting an improved balance sheet structure.
- Mining Operations and Costs: To reinforce strict cost management, the Company continued to actively optimize its mining business scale by disposing of marginally efficient mining machines and partially adopting a leasing model. As of June 30, 2026, total operational hashrate reached 27.58 EH/s, comprising 19.84 EH/s of self-operated hashrate and 7.74 EH/s of leased hashrate. The Company mined 656 Bitcoins during the quarter. Benefiting from optimized machine portfolio and disciplined execution, the average cash cost per Bitcoin decreased approximately 5% quarter-over-quarter to $73,313. The Company has also begun selectively implementing hedging strategies to mitigate the impact of price volatility on operations.
Mr. Paul Yu, Chief Executive Officer of Cango, stated: "In our Bitcoin mining business, we continue to focus on unit economics rather than scale expansion. Meanwhile, we are making steady progress on the AI modular buildout at the LN mining site. The Georgia site completed its retrofit in early July, with infrastructure now supporting up to 3 megawatts of capacity and room for future expansion. Cabinets have been delivered and installed, and GPU hardware has been procured and is arriving in batches to support phased ramp-up. Going forward, we plan to pursue two business models: first, bare-metal GPU hosting, leveraging our infrastructure to provide standardized deployment environments; and second, colocation services aimed at improving overall infrastructure utilization. Our Georgia site is onboarding customers, with revenue expected to be recognized in the third quarter. To support customers requiring proximity deployment, we have begun operating test nodes in Texas and on the West Coast as part of the phased ramp-up. Looking ahead, we continue to evaluate potential new sites and self-built facility opportunities."
Mr. Simon Tang, Chief Financial Officer of Cango, stated: "We recorded a net loss of $81.6 million this quarter, primarily due to non-cash impairment and disposal losses on mining machines. During the quarter, we also initiated a Bitcoin hedging program designed to manage Bitcoin price volatility risk and enhance operating cash flow predictability. We strictly treat hedging as a risk management tool, not for speculative purposes. The related short positions have been reflected on the balance sheet and will be adjusted as we continue to strictly execute the program."
Second Quarter 2026 Results from Continuing Operations
Revenue
Total revenue for the quarter was $50.8 million, consisting of $47.4 million from Bitcoin mining and $3.4 million from other revenue. Compared to the first quarter of 2026, total revenue decreased approximately 50%, primarily reflecting the Company's proactive reduction of operational hashrate, gradual phase-out of older, inefficient S19 series mining machines, and conversion of some capacity to hosting and leasing models. While this strategic adjustment had a short-term impact on revenue, it reduced operating costs and improved overall cash flow.
Operating Costs and Expenses
Total operating costs and expenses for the quarter were $131.4 million. These costs were primarily related to the Company's Bitcoin mining operations and recognition of mining machine impairment losses, and included losses from changes in fair value of crypto assets.
- Cost of revenue (excluding depreciation noted below) was $50.7 million, lower than $99.6 million in the first quarter of 2026, mainly due to reduced electricity and hosting costs following the hashrate reduction.
- Depreciation was $16.9 million, down from $29.4 million in the first quarter of 2026.
- General and administrative expenses (including related party expenses) totaled $8.4 million.
- Impairment loss on mining machines was $42.9 million.
- Loss on disposal of mining machines was $8.5 million.
- Loss from changes in fair value of crypto assets was $4.1 million, compared to a loss of $151.8 million in the first quarter of 2026. The change was primarily due to the stabilization and moderate recovery of Bitcoin market prices during the quarter, as well as the initial impact of the newly launched Bitcoin hedging program.
Operating Loss
Operating loss for the second quarter of 2026 was $80.6 million, compared to an operating loss of $254.4 million in the first quarter of 2026.
Net Loss from Continuing Operations
Net loss from continuing operations for the second quarter of 2026 was $81.6 million, compared to a net loss of $261.1 million in the first quarter of 2026. The net loss was primarily attributable to non-cash impairment and disposal losses.
Adjusted EBITDA
Adjusted EBITDA for the second quarter of 2026 was a loss of $10.7 million, which included a loss from changes in fair value of crypto assets of $4.1 million, compared to an adjusted EBITDA loss of $154.1 million in the first quarter of 2026.
Balance Sheet
As of June 30, 2026, the Company held:
- Cash and cash equivalents of $10.1 million, compared to $7.2 million as of March 31, 2026.
- 1,056 BTC held in inventory.
- Net book value of mining machines of $58.7 million.
- Long-term debt (related party) of $31.2 million, compared to $30.6 million as of March 31, 2026.
