Bitcoin miner Cango Inc. (NYSE: CANG) reported on August 31 that its second-quarter revenue fell roughly 50% from the prior quarter to US$50.8 million, as the company deliberately reduced its operating hashrate and retired older mining machines. The unaudited results, detailed in the company’s earnings release, show that the shift toward unit economics over scale carried a steep short-term cost: a US$81.6 million net loss.
Bitcoin mining produced US$47.4 million of the total revenue, with US$3.4 million coming from other sources. Cango attributed the decline to its proactive reduction of operating hashrate as it phased out older S19-series machines and moved some capacity to a leasing model rather than continuing to run them itself. The company entered the digital-asset business in November 2024 and now operates mining sites across North America, the Middle East, South America, and East Africa.
A Deliberate Retreat From Scale
Cango ended the quarter with 27.58 EH/s of total operating hashrate, split between 19.84 EH/s of self-mining capacity and 7.74 EH/s of leased capacity as of June 30. The smaller footprint cut electricity and hosting costs, but it also generated US$42.9 million in impairment losses on mining machines and an US$8.5 million loss on disposals. Operating loss narrowed to US$80.6 million from US$254.4 million in the first quarter, while adjusted EBITDA was a US$10.7 million loss compared with US$154.1 million a quarter earlier. The pullback echoes the conditions that pushed rival BitFuFu’s Q2 revenue down 62.9% in the same weak quarter for miners.
Hedging Bitcoin and Building Out AI Compute
During the quarter Cango launched a Bitcoin hedging program intended to manage exposure to price swings and make operating cash flow more predictable. The loss from changes in the fair value of its crypto assets narrowed to US$4.1 million from US$151.8 million in the first quarter, which the company said partly reflected the stabilization and modest recovery in Bitcoin prices plus the early impact of the new program. Cango held 1,056 BTC in treasury at the end of June. Chief Executive Paul Yu said the company continued to deliver on its AI modular build and that its Georgia site completed conversion in early July with infrastructure now capable of supporting up to 3 megawatts, with room to expand. That diversification is part of a wider pattern in which AI contracts give miners a valuation edge as hashprice squeezes pure-play operators.
A Signal for the Mining Sector
The report extends a trend BlockchainReporter has been tracking: publicly traded miners are trimming pure-play hashrate while signing artificial-intelligence and high-performance-computing contracts to offset thinner mining margins. Cango’s retreat echoes the scale of deals such as Core Scientific’s US$24 billion in AI contracts, which have not fully resolved questions about miner leverage. Cango ended the quarter with US$10.1 million in cash and US$31.2 million in related-party long-term debt. What remains uncertain is whether the smaller mining footprint and the AI buildout can generate enough recurring revenue to replace the lost mining output. Cango’s net loss was driven largely by non-cash impairment and disposal charges, and the company has not disclosed how quickly the Georgia site and its EcoHash business can scale. The figures are unaudited and could still change in the formal filing.
