Cango reported a $452.8 million loss in 2025, driven by transformation costs and market volatility, prompting strategic shifts toward AI.
Cango has disclosed a staggering net loss of $452.8 million for the year 2025, primarily due to extraordinary business transformation expenses and fluctuating market conditions, according to CFO Michael Zhang.
The company generated $688.1 million in revenue, predominantly from Bitcoin mining, which accounted for $675.5 million of the total. In its inaugural year of large-scale operations, Cango mined 6,594.6 BTC, averaging approximately 18 coins daily.
Operating expenses surpassed $1.1 billion, driven by significant costs such as:
- $338.3 million for depreciation of mining equipment;
- $96.5 million for the revaluation of loans backed by Bitcoin.
In the last quarter of the year, Cango reported a loss of $285 million against revenues of $179.5 million and operating costs totaling $456 million. The cost of mining rose to $106,251 per BTC, rendering operations unprofitable with Bitcoin prices at $73,900.
Following the earnings announcement, Cango's stock plummeted by 14.4%, and shares have seen a decline of over 60% throughout the year.
Shift in Strategy and Asset Management
To alleviate its debt, Cango sold 4,451 BTC in February 2026 and subsequently shut down 30% of its mining hash rate. The company is now reshaping its approach, treating Bitcoin as a treasury asset to fund new initiatives.
CEO Paul Yu emphasized the company's pivot towards artificial intelligence infrastructure, planning to deploy modular container solutions for neural network computing tasks. This shift aligns with the burgeoning demand for high-performance computing (HPC) in the industry, as miners transition from traditional digital asset mining to more lucrative AI hosting opportunities.
TeraWulf's Debt Financing Strategy
Meanwhile, TeraWulf is aggressively pursuing debt financing to enhance its HPC capabilities. The company has secured a $500 million credit line for one year, aimed at establishing a new data center in Haysville, USA.
This financing effort is part of a broader fundraising initiative that has significantly transformed TeraWulf's capital structure, with about $6.5 billion raised by the end of February 2026. The company's HPC infrastructure now boasts a total contracted capacity of 522 megawatts across its Lake Mariner and Abernathy facilities.
Amid these developments, analysts from Hashrate Index have cautioned that ongoing geopolitical tensions, particularly the oil crisis due to the conflict in Iran, could adversely affect Bitcoin prices and, consequently, miners' profitability.
