Bitcoin miner Cango cuts debt, launches EcoHash AI platform
DALLAS, May 31, 2026 /PRNewswire/ -- Cango Inc. (NYSE: CANG) ("Cango" or the "Company"), a leading Bitcoin miner leveraging its global operations to develop an integrated energy and AI compute platform, today announced its unaudited financial results for the first quarter ended March 31, 2026.
First Quarter of 2026 Financial and Operational HighlightsFinancial Performance: In the first quarter of 2026, the Company generated total revenue of US$102.0 million, primarily driven by US$98.4 million from its Bitcoin mining business. The Company reported a net loss of US$261.1 million, primarily due to non-cash impairment charges on Bitcoin mining machines and changes in the fair value of Bitcoins, both resulting from the decline in bitcoin market prices. Long-term debt was reduced to US$30.6 million, down from US$557.6 million as of December 31, 2025. As of quarter-end, the Company held 1,026 Bitcoin in digital asset reserves.Mining Operations and Costs: The Company continued to enhance operating efficiency while maintaining a disciplined operational footprint. Total hashrate was 37.01 EH/s, comprising 27.98 EH/s of self-mining capacity and 9.02 EH/s of leased hashrate capacity. During the quarter, the Company mined 1,266 Bitcoin. Ongoing fleet optimization and disciplined cost management drove a 9.0% sequential reduction in average cash cost per Bitcoin to US$76,928 compared to the fourth quarter of 2025, reinforcing the Company's focus on operational efficiency.AI Development: Building on its core infrastructure capabilities, the Company made meaningful progress in its strategic expansion into AI compute. During the quarter, the Company launched EcoHash, a new commercial platform leveraging Cango's existing expertise in energy management and high-density computing. The Company is working on pilot deployment of modular, containerized compute units which supports a phased roadmap that begins with GPU compute leasing and scales toward a global AI compute network over time.Mr. Paul Yu, Chief Executive Officer of Cango, said, "We are executing a disciplined strategy to strengthen our mining foundation while advancing into AI infrastructure through EcoHash. In recent months, we have seen positive developments, including continued cost reductions driven by our fleet upgrade strategy, as well as steady operational performance across our global mining footprint. At the same time, our EcoHash initiative continues to progress, with pilot deployments advancing on schedule. By leveraging our global energy network and operational expertise, we are well-positioned to enhance efficiency, capture emerging AI compute opportunities, and drive sustainable long-term value."Mr. Simon Tang, Chief Financial Officer of Cango, stated, "Despite a challenging quarter affected by industry adjustments and non-cash impacts, we made meaningful progress in improving our cost structure and strengthening our balance sheet. We reduced long-term debt, and achieved continued declines in mining cash costs through disciplined execution. Going forward, we remain focused on enhancing cash flow resilience, maintaining financial flexibility, and supporting the Company's strategic transition into more efficient and diversified infrastructure."First Quarter 2026 Financial Results from Continuing OperationsREVENUESDuring the quarter, total revenues were US$102.0 million, and revenues from Bitcoin mining were US$98.4 million. Compared with the fourth quarter of 2025, total revenue decreased approximately 43%, primarily reflecting the Company's proactive reduction of operating hashrate as it phased out older, less efficient S19 series mining machines and transitioned some capacity to a leased hashrate.OPERATING COSTS AND EXPENSESDuring the quarter, total operating costs and expenses were US$356.4 million. These costs were primarily associated with the Company's Bitcoin mining business, the recognition of impairment loss on mining machines, the loss on disposal of mining machines, and the loss from changes in fair value of receivable for Bitcoin collateral.Cost of revenue (exclusive of depreciation shown below) was US$99.6 million, down from US$155.3 million in the fourth quarter of 2025. This was driven by lower electricity and hosting expenses following the hashrate reduction.Depreciation was US$29.4 million.General and administrative expenses, including related-party fees, totaled US$7.2 million.Impairment loss from mining machines was US$49.0 million.Loss on disposal of mining machines was US$20.3 million.Loss from changes in fair value of receivable for Bitcoin collateral was US$151.8 million, compared to US$171.4 million in the fourth quarter of 2025. This non-cash loss was primarily driven by lower Bitcoin prices during the quarter.LOSS FROM OPERATIONSLoss from operations in the first quarter of 2026 was US$254.4 million, compared with an operating loss of US$26.9 million in the same period of 2025, primarily due to the decline in Bitcoin prices.NET LOSS FROM CONTINUING OPERATIONSNet loss from continuing operations in the first quarter of 2026 was US$261.1 million, compared with a net loss of US$28.3 million in the same period of 2025.ADJUSTED EBITDAAdjusted EBITDA loss in the first quarter of 2026 was US$-154.1 million compared with adjusted EBITDA loss of US$1.7 million in the same period of 2025.BALANCE SHEETAs of March 31, 2026, the Company held:Cash and cash equivalents of US$7.2 million, down from US$41.2 million at year-end 2025, mainly due to debt repayments and operational activities.Receivable for Bitcoin collateral (non-current, related party) with a net value of US$68.2 million.Mining machines with a net value of US$130.8 million.Long-term debts (related party) of US$30.6 million, compared with US$557.6 million as of December 31, 2025.The substantial reduction in both the receivable for Bitcoin collateral and the associated long-term debt reflects the Company's proactive deleveraging efforts during the quarter.Conference Call InformationThe Company's management will hold a conference call on Sunday, May 31, 2026, at 9:00 P.M. Eastern Time or Monday, June 1, 2026, at 9:00 A.M Hong Kong Time to discuss the financial results. Listeners may access the call by dialing the following numbers:International: +1-412-902-4272United States Toll Free: +1-888-346-8982Mainland China Toll Free: 4001-201-203Hong Kong, China Toll Free: 800-905-945Conference ID: Cango Inc.The replay will be accessible through June 7, 2026, by dialing the following numbers:International: +1-412-317-0088United States Toll Free: +1-855-669-9658Access Code: 3013185A live and archived webcast of the conference call will also be available at the Company's investor relations website at http://ir.cangoonline.com.About Cango Inc.Cango Inc. (NYSE: CANG) is a Bitcoin mining company with a vision to establish an integrated, global infrastructure platform capable of powering the future digital economy. The Company's mining operations span over 40 sites across North America, the Middle East, South America, and East Africa.Since entering the digital asset space in November 2024, Cango has activated pilot projects in both integrated energy solutions and distributed AI computing. In parallel, Cango continues to operate an online international used car export business through AutoCango.com.For more information, please visit: www.cangoonline.com and follow us on: X and LinkedIn.Use of Non-GAAP Financial MeasureAs part of our review of business performance, we present adjusted EBITDA as a non-GAAP financial measure to help assess our core operating results. Adjusted EBITDA is defined as net income or loss before interest, taxes, depreciation, and amortization, impairment, results from discontinued operations and further excludes share-based compensation expenses, loss on disposal of mining machines and other non-operating income and expenses. We believe adjusted EBITDA can be an important financial measure because it allows management, investors, and our board of directors to evaluate and compare our operating results, including our return on capital and operating efficiency from period-to-period by making such adjustments.While adjusted EBITDA is not a measure defined under U.S. GAAP, management uses it to evaluate performance, make strategic decisions, and set operating plans. Management believes it also helps investors gain a clearer understanding of our underlying performance by excluding certain costs and expenses that management believes are not indicative of the Company's core operating results. The presentation of this non-GAAP financial measures is not meant to be considered in isolation or as a substitute for results or guidance prepared and presented in accordance with U.S. GAAP.The Company compensates for these limitations by reconciling the non-GAAP financial measure to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating the Company's performance. The Company encourages you to review its financial information in its entirety and not rely on a single financial measure.Reconciliations of Cango's non-GAAP financial measure to the most comparable U.S. GAAP measure are included at the end of this press release.Safe Harbor StatementThis announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the quotations from management in this announcement, contain forward-looking statements. Cango may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the "SEC") , in its annual report on Form 20-F, its current reports on Form 6-K, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Cango's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: volatility in Bitcoin price and the resulting impact on the Company's Bitcoin holdings, mining equipment and related receivables; Bitcoin network difficulty, halving events and the cost and availability of electricity; the Company's ability to execute its AI compute strategy, including the commercialization and scaling of the EcoHash platform; the Company's liquidity, indebtedness and ability to access additional financing; general economic and business conditions; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in Cango's filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and Cango does not undertake any obligation to update any forward-looking statement, except as required under applicable law.Investor Relations ContactJuliet Ye, Head of CommunicationsCango Inc.Email: ir@cangoonline.comChristensen AdvisoryTel: +852 2117 0861Email: cango@christensencomms.com CANGO INC.UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS(Amounts in US dollar ("US$"), except for number of shares） As of December 31, 2025 As of March 31, 2026 US$ US$ ASSETS:Current assets:Cash and cash equivalents41,243,6277,171,427Crypto currencies42,5457,887,617Accounts receivable, net1,661,7022,486,551Accounts receivable, net - related parties1,064,44056,852Prepayments and other current assets, net6,835,59964,131,941Other current assets, net - related party74,270,77055,203,008Total current assets125,118,683136,937,396Non-current assets:Mining machines, net248,745,505130,802,268Property, plant and equipment, net18,797,92518,664,448Intangible assets, net292,836285,290Operating lease right-of-use assets, net2,079,9371,923,121Receivable for bitcoin collateral - non-current - related party662,968,81468,181,445Other non-current assets, net68,025,98316,948,984Other non-current assets, net - related party6,955,6506,955,650Total non-current assets1,007,866,650243,761,206TOTAL ASSETS1,132,985,333380,698,602LIABILITIES AND SHAREHOLDERS' EQUITYCurrent liabilities:Accrued expenses and other current liabilities82,329,07546,712,830Accrued expenses and other current liabilities - related parties5,025,5662,103,992Income tax payable88,792,50388,362,240Short-term lease liabilities573,959412,944Total current liabilities176,721,103137,592,006Non-current liabilities:Long-term debts - related party557,567,67130,611,355Deferred tax liability11Long-term operating lease liabilities1,655,2721,687,682Total non-current liabilities559,222,94432,299,038Total liabilities735,944,047169,891,044Shareholders' equityOrdinary shares44,17149,796Treasury shares(103,424,568)(104,429,322)Additional paid-in capital1,135,958,9431,211,777,145Accumulated deficit(635,537,260)(896,590,061)Total Cango Inc.'s equity397,041,286210,807,558Total shareholders' equity397,041,286210,807,558TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY1,132,985,333380,698,602 CANGO INC.UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OFCOMPREHENSIVE INCOME(Amounts in US dollar ("US$"), except for number of shares) For three months ended March 31 20252026 US$ US$ Revenues144,154,046102,000,984Bitcoin mining income144,144,31298,443,880Other revenues9,7343,027,230Other revenues from related parties-529,874Operating cost and expenses:Cost of revenue (exclusive of depreciation shown below)112,661,70299,578,785Cost of revenue (depreciation)21,344,84429,372,199General and administrative10,028,2696,549,346General and administrative - related parties-647,653Provision (Net recovery) for credit losses289,231(979,753)Impairment loss from mining machines-49,038,548Loss from changes in fair value of receivable for bitcoin collateral26,735,505151,838,430Loss on disposal of mining machines-20,307,212Total operation cost and expense171,059,551356,352,420Loss from operations(26,905,505)(254,351,436)Interest income294,1922,134Interest expense(1,310,597)-Interest expense - related party-(6,702,867)Foreign exchange loss, net(27,690)(632)Other income112,870-Net loss before income taxes(27,836,730)(261,052,801)Income tax expenses (431,183)-Net loss from continuing operations (28,267,913)(261,052,801)Discontinued operations:Loss from discontinued operations(3,907,013)-Net loss from discontinued operations(3,907,013)-Net loss attributable to Cango Inc.'s shareholders(32,174,926)(261,052,801)Losses per ordinary share:Basic--Discontinued operations(0.02)-Continuing operations (0.14)(0.73)Basic(0.16)(0.73)Diluted--Discontinued operations(0.02)-Continuing operations (0.14)(0.73)Diluted(0.16)(0.73)Weighted average shares used to compute losses per ordinary share:Basic207,566,173358,611,981Diluted207,566,173358,611,981Other comprehensive income, net of taxForeign currency translation adjustment(5,279,250)-Total comprehensive loss(37,454,176)(261,052,801)Total comprehensive loss attributable to Cango Inc.'s shareholders(37,454,176)(261,052,801) CANGO INC.RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS(Amounts in US dollar ("US$"), except for number of shares For three months ended March 31 20252026 (Unaudited) (Unaudited) US$ US$ Net loss(32,174,926)(261,052,801)Less: Discontinued operations: Loss from discontinued operations(3,907,013)- Loss on discontinued operations(3,907,013)-Net loss from continuing operations (28,267,913)(261,052,801)Add: Interest expense1,310,5976,702,867Add: Income tax expenses431,183-Add: Depreciation and amortization21,349,99929,389,003Cost of revenue21,344,84429,372,199General and administrative5,15516,804Add: Impairment loss from mining machines-49,038,548Add: Loss on disposal of mining machines-20,307,212Less: Other income112,870-Add: Share-based compensation expenses3,545,1881,536,295General and administrative3,545,1881,536,295Non-GAAP adjusted EBITDA(1,743,816)(154,078,876)Non-GAAP adjusted EBITDA attributable to Cango Inc.'s shareholders(1,743,816)(154,078,876)
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