Cango (NYSE:CANG) reported second-quarter 2026 revenue of approximately $50.8 million, as the company deliberately reduced its Bitcoin mining operations and began shifting part of its capacity toward a leasing model. Bitcoin mining generated about $47.4 million of quarterly revenue, while the company recorded a net loss from continuing operations of $81.6 million, driven largely by non-cash charges associated with restructuring its mining-machine fleet.
Chief Executive Officer Paul Yu said the company has been phasing out lower-efficiency mining machines and prioritizing economics over operating scale. Cango also provided an update on its AI infrastructure initiative, although management emphasized that the developments occurred after June 30 and therefore were not reflected in the reported second-quarter financial results.
Mining Revenue Declines as Cango Reduces Capacity
Revenue fell about 50% from the first quarter, which Chief Financial Officer Simon Ming Yeung Tang attributed to the planned reduction in operational hash rate, the retirement of older S19-series machines and the temporary transition of some capacity to hosted leasing. Under the leasing model, lessees bear direct operating costs tied to the leased hash rate, reducing Cango’s exposure to variable expenses.
“We will continue to evaluate the mix between self-mining and leasing based on economics rather than scale,” Yu said.
The company’s average cash mining cost, excluding depreciation, was $73,313 per Bitcoin in the second quarter, down about 35% from the first quarter. Its all-in mining cost was $98,405 per Bitcoin.
Cost of revenue excluding depreciation declined to $50.7 million from $99.6 million in the first quarter, reflecting lower electricity and hosting expenses following the hash-rate reduction. Depreciation expense fell to $16.9 million from $29.4 million.
Tang said the company has continued negotiating with third-party hosting sites. He noted that many hosting contracts include mechanisms that reduce power prices when Bitcoin prices decline, providing what he described as additional downside protection. Most of Cango’s mining machines are hosted by third parties, while the company owns a 50-megawatt site in Ellen, Georgia.
For the third quarter, Tang said Cango does not expect its operational hash rate or mining-machine base to change significantly, though regional power curtailments during July and August could affect operations. He added that, excluding leased capacity, slightly more than one-third of the operating fleet consists of newer S21-series machines.
Impairment and Disposal Charges Drive Net Loss
Cango’s operating loss was $80.6 million, while net loss from continuing operations totaled $81.6 million. The loss was primarily attributable to a $42.9 million impairment charge on mining machines and an $8.5 million loss on the disposal of mining machines. Together, those items totaled approximately $51 million.
The company also reported a $4.1 million loss from changes in the fair value of crypto assets, compared with a $151.8 million loss in the first quarter. Tang said the second-quarter result reflected lower Bitcoin prices as of June 30, partially offset by the company’s newly implemented hedging program.
On a non-GAAP basis, adjusted EBITDA was a loss of $10.7 million, including the $4.1 million loss associated with changes in the fair value of receivables for Bitcoin collateral.
Bitcoin Hedging Program Uses Short-Term BTC Loans
During the quarter, Cango began implementing a Bitcoin hedging program intended to reduce sensitivity to Bitcoin price movements and make operating cash flows more predictable. Tang said the program is used for risk management rather than speculative positioning.
The program is structured as a short-term loan denominated in Bitcoin. As of quarter-end, the related short-term debt was approximately $8 million, with a roughly equivalent amount recorded as a current asset, Tang said. Cango receives Bitcoin through the loan, sells it at the spot price on the first day and may repay the loan with Bitcoin produced through mining operations if prices subsequently decline.
Tang said the company generally considers hedging amounts in relation to one or two months of Bitcoin production and intends to continue using the tool selectively.
AI Infrastructure Moves Toward Initial Commercialization
After the end of the second quarter, Cango completed construction at its Georgia LN site, which has infrastructure capable of supporting up to 3 megawatts. Container units have arrived and are being installed, while GPUs are arriving in batches, Yu said.
The company also signed its first AI infrastructure customer contract after June 30. Management said the contract moves the initiative from technical validation toward commercial monetization, although contracted revenue remains small. Cango expects to begin recognizing AI-related revenue in the third quarter, with an initial contribution that Yu described as modest.
Cango plans to pursue bare-metal GPU hosting using its existing site and power infrastructure, as well as colocation arrangements designed to improve utilization. The company has not yet signed a formal colocation agreement, and contract terms remain under discussion.
The company also has test nodes in Texas and on the West Coast to support customers that may require deployments closer to their locations. Management said it is evaluating potential new sites and has not ruled out building facilities itself.
As of June 30, Cango held 1,056 Bitcoins in treasury, along with $10.1 million in cash and cash equivalents. Mining machines carried a net value of $58.7 million after depreciation. Long-term debt was $31.2 million, compared with $30.6 million at the end of the first quarter.
About Cango (NYSE:CANG)
Cango Inc (“Cango”) is a leading smart automotive transaction service provider in China, headquartered in Shanghai. The company operates an online‐to‐offline platform that integrates vehicle sourcing, financing, distribution and insurance, offering a comprehensive ecosystem for automakers, dealers and consumers. Leveraging big data analytics and cloud computing, Cango connects buyers and sellers through its proprietary digital infrastructure, facilitating transparent and efficient transactions across the automotive value chain.
Cango’s core offerings include auto financing solutions for new and used vehicles, extended consumer loans and wealth management products.
