Cango Inc. has pivoted from car trading to Bitcoin mining and now plans to reach 50 EH/s by early 2025. With its growing BTC reserves, Tencent as an institutional investor, and ties to Bitmain, could it be the next surprise player in mining?
Deep Dive into Cango
This is a guest post from Bitcoinminingstock.io, the one-stop resource for all things Bitcoin mining stocks, education, and industry ideas. Originally published on March 25, 2025 by Cindy Feng of Bitcoinminingstock.io.
It’s been a few weeks since we last looked at some of the lesser-known names in the Bitcoin mining space. I’ve been taking a bit of a break from posting, partly due to the slowdown in activity in the sector, but also because I’m recovering from a back injury (a reminder of the importance of listening to your body and not overdoing it with physical activity).
In this second installment of the series, I want to discuss Cango Inc. (NYSE: CANG) . Why? While the entire mining sector is struggling, Cango has had some strong days , which is due to the announcement of a share buyback and an optional buyback offer .
Bitcoin Miner Stock Heatmap (Real-Time Updates)
But here's what really caught my attention: Just a few months ago, it was still a car trading platform with limited room for growth. Now the company is targeting 50 EH/s at the start of the year, and 32 EH/s are already online .
How is this bold turn going? And can Cango quietly become a significant player in this segment? Let's find out.
Company overview
Cango Inc. (NYSE: CANG) started out as a Shanghai-based auto financier and then positioned itself as a major player in China’s used car trading market. By late 2023, the company had shifted its focus from its domestic market to facilitating used car sales from China to emerging markets. Then in November 2024, Cango announced its entry into the Bitcoin mining market, launching operations with 32 EH/s of online hashrate . The scale and speed of the move came as a surprise to many investors, placing Cango just behind MARA and CleanSpark and making it the third-largest public Bitcoin miner by installed hashrate at the time.
Public Miners Hashrate Review
The acquisition of the mining business was for 50 EH/s in total, with the remaining 18 EH/s expected to be operational in Q1 2025, according to the terms outlined in the agreement. Notably, the infrastructure was not built from scratch: Cango purchased the operational ASIC fleets directly from Bitmain , and Bitmain’s division continues to operate and maintain the machines in third-party hosting centers.
According to the company's disclosure, Cango's fleet is primarily based in the United States, East Africa, Oman, and Paraguay , allowing the company to avoid China's current restrictions on cryptocurrencies.
Financial indicators
Transformation of revenue and profitability
The changes in Cango’s bitcoin mining operations are clearly reflected in its latest financial results. In the fourth quarter of 2024, the company reported revenue of 668 million yuan (US$91.5 million), up 414% year-on-year . This growth was almost entirely driven by bitcoin mining , which accounted for 98% of total revenue. Meanwhile, the automotive trading segment, previously Cango’s core business, brought in only 15 million yuan (US$2.1 million), indicating that this legacy segment is effectively winding down.
Despite revenue growth, profitability remains a major concern . Cango posted a gross margin of 17.6% in Q4, significantly lower than peers with comparable transaction volumes. For example, CleanSpark , which operates in a comparable hashrate range, posted a gross margin of 57% in the same period. This indicates that Cango’s cost structure is far from optimized. Dependence on third-party hosting and exposure to high electricity costs are two major factors.
The average cost of producing Bitcoin was $67,769 per BTC (cash costs include electricity and
Source: cryptonews.net
