Latest news with #CangoInc
Cision Canada
29-05-2025
- Business
- Cision Canada
Cango Inc. Completes PRC Business Sale, Strengthens Board to Drive Global Bitcoin Focus
SHANGHAI, May 29, 2025 /CNW/ -- Cango Inc. (NYSE: CANG) ("Cango" or the "Company"), a rapidly expanding leader in Bitcoin mining, has finalized the divestment of all its business in the PRC (the "PRC Business"), a strategic transaction valued at approximately US$351.94 million in cash with Ursalpha Digital Limited. The sale, which closed on May 27, 2025, decisively repositions Cango to concentrate its full financial and operational capabilities on accelerating its leadership in the global Bitcoin mining industry. This pivotal move unlocks significant resources and facilitates Cango's rapid expansion of its Bitcoin mining across key strategic regions, including North America, the Middle East, South America, and East Africa, leveraging emerging opportunities in the digital finance sector. This transaction also represents a transformative step for Cango, cementing its strategic shift to a focused leader in global Bitcoin mining. The Company is now streamlined and better capitalized, positioning it to aggressively pursue its growth objectives and enhance shareholder value. As part of this strategic realignment, the Company has further restructured its Board of Directors with the appointment of two new members, effective May 27, 2025, bringing deep expertise in Fintech, AI, Web 3.0, and global capital markets to steer Cango's Bitcoin-focused future. Looking ahead, this enhanced board composition reinforces Cango's commitment to innovation and strengthens its position for leadership in the rapidly evolving digital finance landscape. The initial agreements for the sale of PRC Business were announced on April 3, 2025, with shareholder approval obtained on May 16, 2025. Following the divestment, the Company will apply to the China Securities Regulatory Commission ("CSRC") to terminate its "China Concept Stock" status. About Cango Inc. Cango Inc. (NYSE: CANG) is primarily engaged in the Bitcoin mining business, with operations strategically deployed across North America, the Middle East, South America, and East Africa. The Company entered the crypto asset space in November 2024, driven by advancements in blockchain technology, the growing adoption of digital assets, and its commitment to diversifying its business portfolio. In parallel, Cango continues to operate an online international used car export business through making it easier for global customers to access high-quality vehicle inventory from China. For more information, please visit: Media Contact SOURCE Cango Inc.
Cision Canada
19-05-2025
- Business
- Cision Canada
Cango Inc. Reports Q1 2025 Bitcoin Mining Revenue Meets Apollo Insights' Expectations, Firm Highlights Solid Operational Metrics and Growth Potential
SHANGHAI, May 19, 2025 /CNW/ -- Cango Inc. (NYSE: CANG) ("Cango" or the "Company"), a rapidly expanding leader in Bitcoin mining, today announced the release of Apollo Insights' first quarter review of the Company's performance, which highlighted that Cango's Q1 2025 Bitcoin mining revenue was in line with their expectations and noted the Company's solid operational metrics and potential for future growth. The Apollo Insights review, titled "Q1 BTC Mining Revenue In-Line, Deployed Hash Rate Poised For Growth," reported Cango's Q1 2025 Bitcoin mining revenue at RMB 1,046 million, in line with the firm's estimates. While the report noted a Q1 2025 adjusted EBITDA loss, attributed primarily to Bitcoin price volatility and expenses from the legacy auto business, Apollo Insights maintained a positive outlook for future profitability driven by operating leverage in the Bitcoin mining segment. The firm increased its full-year 2025 revenue estimate to RMB 5,173 million, reflecting higher Bitcoin price assumptions partially offset by increased network difficulty. The review highlighted Cango's solid operational performance in Q1 2025, with deployed hash rate reaching 32 EH/s by quarter-end. In March 2025, Cango achieved industry-leading productivity of 16.6 Bitcoin mined per EH/s. The Company mined a total of 1,541 Bitcoins in the quarter and held 2,475 Bitcoins as of March 31, 2025, with no Bitcoins sold. Apollo Insights estimates significant hash rate growth ahead, projecting Cango to exit fiscal 2025E and fiscal 2026E with deployed hash rates of 42 EH/s (+10 EH/s year-over-year) and 54 EH/s (+12 EH/s year-over-year), respectively. This growth trajectory includes the planned acquisition of 18 EH/s expected to be completed by the end of July 2025. Looking ahead, as a future-ready company with strong operational flexibility, the report outlines that Cango will strive to secure more favorable mining contracts, explore self-operation of its fleet of mining equipment, consider investing in low-cost, clean energy projects in the Middle East and Australia, offer various digital financial services, and develop the "asset light" used car platform. About Cango Inc. Cango Inc. (NYSE: CANG) primarily operates a leading Bitcoin mining business. Cango has deployed its mining operation across strategic locations including North America, Middle East, South America, and East Africa. Cango expanded into the crypto assets market in November 2024, driven by the development in blockchain technology, increasing prevalence of crypto assets and its endeavor to diversify its business. Meanwhile, Cango has continued to operate the automotive transaction service in China since 2010, aiming to make car purchases simple and enjoyable. For more information, please visit: Media Contact SOURCE Cango Inc.
Yahoo
15-05-2025
- Business
- Yahoo
Q1 2025 Cango Inc Earnings Call
Lin Jiayuan; Chief Executive Officer, Co-Founder, Director; Cango Inc Zhang Yongyi; Chief Financial Officer, Director; Cango Inc Emerson Zhao; Analyst; Goldman Sachs Michael Donovan; Analyst; HC Wainwright Operator Good morning and evening, everyone. Welcome to Cango Inc.'s First Quarter 2025 Earnings Conference Call. (Operator Instructions) This call is also being broadcast live on the company's IR website. Joining us today are Mr. Jiayuan Lin, Chief Executive Officer; and Mr. Yongyi Zhang, Chief Financial Officer of the company. Following management's prepared remarks, we will conduct the Q&A session. Before we begin, I refer you to the safe harbor statement in the company's earnings release, which also applies to the conference call today as management will make forward-looking statements. With that said, I am now turning the call over to Mr. Jiayuan Lin, CEO of Cango. Please go ahead, sir. Lin Jiayuan Hi, everyone, and welcome to Cango's first quarter 2025 earnings call. In the first quarter of 2025, Bitcoin further solidified its dominance despite significant volatility in the cryptocurrency market. Amid global economic uncertainty, Bitcoin demonstrated strong resilience and stability as a safe haven asset. On the policy front, the Trump administration's supportive stance towards the crypto market has undoubtedly fostered a more favorable regulatory environment. The establishment of a strategic Bitcoin reserve and pro-digital currency appointments are expected to provide clearer direction and more stable expectations for the industry's future development. Cango entered the Bitcoin mining industry in November 2024. Over the past few months of exploration and operation, Cango has not only achieved business growth but also unlocked new development opportunities. In the first quarter of 2025, Cango reported total revenue of USD145 million with USD144 million contributed by our Bitcoin mining operations. Gross profit for the quarter reached USD13.61 million. Operating loss stood at $21.42 million, primarily due to decline in Bitcoin prices towards the end of March, which led to a decrease in the fair value of the company's Bitcoin holdings. As of the end of the quarter, Cango maintained a strong cash position with total cash, cash equivalents and short-term investments amounting to USD347 million, providing solid support for future business expansion. While actively expanding our Bitcoin business, we continue to reduce our total outstanding loan balance and significantly improve loan quality. As of March 31, 2025, our total outstanding loan balance was approximately RMB2.6 billion with M1+ and M3+ ratios of 2.86% and 1.59%, respectively. In addition, our credit risk exposure not covered by full bad debt allowance or full risk assurance liabilities further declined to RMB760 million, down 30% from RMB1.08 billion as of December 31, 2024. Till now, we hold a total computing power of 32 exahashes per second, accounting for approximately 4% of the global average hash rate in Q1. Our mining machines are deployed across North America, South America, the Middle East and Africa, a globally diversified setup that enables us to optimize resource allocation. Nearly 90% of our currently operational miners are water cooled S19 XP models. In addition, the delivery of an additional 18 exahashes per second of computing power is progressing as planned and is expected to be completed by July 31. Once finalized, our total hash rate capacity will reach 50. Since entering the Bitcoin mining industry, we have remained focused on improving our operational metrics. In the first quarter, we mined a total of 1,541 Bitcoin. As of the end of April, our total Bitcoin holdings reached 2,944.8 coins, ranking 14th globally among publicly listed companies and fifth among listed mining firms. Throughout Q1, our average monthly effective hash rate consistently exceeded 30 exahashes per second with a coin yield of 16.6 bitcoins per Eh/S, placing us among the top 3 publicly listed mining companies and our efficiency rate is as high as 94%. And in addition, we, in terms of energy efficiency, our average power efficiency for the quarter was 21.6 joules per tera hash with efficiency of 21.5 for March. As we move into 2025, we remain firmly committed to deepening our focus on the Bitcoin mining business. We have a strong confidence in the stability of Bitcoin's supply and its long-term value appreciation potential. As such, we will adopt a Mine and Hold strategy, prioritizing both self-mining and long-term holding. Looking ahead, we will focus on gradually integrating and optimizing our existing computing power resources to maximize efficiency. At the same time, we will actively pursue M&A opportunities, seeking high-quality targets to further scale up our operations. We believe that greater scale will unlock broader growth opportunities, attract top talent and enhance both our market competitiveness and industry recognition. On our traditional automotive business, we remain focused on lean asset-light operations for our used car export platform, AutoCango. Since its launch, the platform has attracted over 2.37 million visits and more than 290,000 registered users. Today, AutoCango has more than 480,000 used car listings covering over 68,000 unique models. AutoCango aims to connect China's used car market with overseas buyers, making it easier for international customers to access high-quality vehicle inventory from China. Looking ahead, Cango will continue to strengthen its global presence and enhance AutoCango's platform capabilities to deliver an even better experience for our users. Now I'd like to hand over the call to our CFO, Mr. Yongyi Zhang, to share our financial highlights for the first quarter of 2025. Zhang Yongyi Thanks, Jiayuan. Hello, everyone, and welcome to our first quarter 2025 earnings call. Before I started to review our financials, please note that unless otherwise stated, all numbers are in RMBterms and all percentage comparisons are on a year-over-year basis. Total revenue in the first quarter of 2025 were RMB1.1 billion compared with RMB64.4 million in the same period 2024. The significant year-over-year increase was primarily driven by the Bitcoin mining business launched in November 2024. Revenue from Bitcoin mining business in the first quarter of 2025 was RMB1 billion with a total of 1,541 Bitcoin mined in the first quarter of 2025. The average cost to mine Bitcoin, excluding depreciation of mining machine, was USD70,602.1 per coin in the quarter. Revenue from automotive trading-related income in the first quarter of 2025 was RMB7.6 million compared with RMB64.4 million in the same period 2024. Now let's move on to our cost and expenses during the quarter. Cost of revenue in the first quarter of 2025 increased to RMB955.1 million from RMB29.1 million in the same period 2024. The year-over-year increase was primarily driven by the cost of Bitcoin mining business. Sales and marketing expenses in the first quarter decreased to RMB0.4 million from RMB3.5 million in the same period of 2024. General and administrative expenses in the first quarter increased to RMB92.5 million from RMB37.9 million in the same period 2024. Research and development expenses in the first quarter decreased to RMB0.3 million from RMB1.1 million in the same period 2024. Net gain on contingent risk assurance liability in the first quarter of 2025 was RMB5.3 million compared with RMB15 million in the same period 2024. Net recovery on provision for credit losses in the first quarter of 2025 was RMB28.7 million compared with RMB66.3 million in the same period 2024. We recorded RMB155.5 million in loss from operations in the first quarter of 2025 compared with income from operations of RMB74.2 million in the same period 2024. Net loss in the first quarter of 2025 was RMB207.3 million. Adjusted EBITDA in the first quarter of 2025 was RMB27.6 million. Moving on to our balance sheet. As of March 31, 2025, the company had cash and cash equivalents of RMB2.5 billion compared with RMB1.3 billion as of December 31, 2024. As of March 31, 2025, the company had short-term investment of RMB5.2 million compared with RMB1.2 billion as of December 31, 2024. Looking ahead to the rest of 2025, we are on track to grow our deployed hash rate to approximately 50 Eh before the end of July. This concludes our prepared remarks. Operator, we are now ready to take questions. Operator (Operator Instructions) Emerson Zhao, Goldman Sachs. Emerson Zhao I'm Emerson from Goldman Sachs. I have 2 questions. The first question is what is your view on the trends in the cryptocurrency market so far? And the second question is, how is the company going to respond to increasing challenges brought about by increasing computing power around the world as well as increasing mining difficulty. Zhang Yongyi Thank you, Emerson, for your questions. So the current cryptocurrency market presents both opportunities and challenges. We believe that as technology advances and the market continues to mature, cryptocurrencies will play an increasingly important role. We will closely monitor market developments and flexibly adjust our strategies to better seize emerging opportunities. So on your second question, on the challenges of increasing computing power around the world and increasing mining difficulty. Well, our responses include, firstly, we will continue to optimize the efficiency of our existing mining operations to ensure high productivity. And at the same time, we are working to expedite the delivery of our second batch of computing power totaling 18 exahashes per second and continue to monitor further acquisition opportunities to further enhance our overall production capacity. Operator [Joy Chay], Sinolink Securities. Thank you management for taking my questions. I'm from Sinolink Securities. So I have altogether 3 questions. The first question is I noticed that the metrics and data for the company in April saw quite a big decrease. So could you give us more color on the reasons behind these declines? And the second question is that, do you see more pressure from increasing power costs or electricity cost on the company? And what are the plans that the company have to address this challenge? And my third question is a more general question regarding the future strategy of the company because we have seen quite a lot of changes in the company over the past year. And so could you give us more details on your future strategic direction? Lin Jiayuan Thank you for your questions. On your first question, in April, we mined 470 coins, a 11.3% decrease compared to March, and this was mainly due to the second largest monthly increase in global network hash rate on record as well as an 8% rise in mining difficulty compared to March. Meanwhile, we maintained a high level of mining efficiency with our deployed hash rate remaining steady at 32 exahashes per second. In the first quarter, our average operational hash rate was about 30 and the efficiency was 93.8%, relatively stable compared to the previous quarter. And for your second question, yes, the company is currently experiencing relatively high electricity costs, primarily due to the premium associated with power procurement under the hosted operation model. However, it is important to note that this model allows us to avoid a heavy capital investment and large staffing costs required for building and operating our own mining facilities. As a result, we have significantly reduced the capital expenditures and operating costs on the infrastructure and operations front. To continuously refine our cost structure, the company has launched a global energy strategy. On one hand, we are conducting detailed cost analysis of existing hosting agreements to explore potential room for renegotiation. On the other hand, we have formed a dedicated team to carry out on-site researchers in energy-rich regions such as the Middle East and Australia with a focus on evaluating the feasibility of partnerships in low-cost clean energy projects, including solar and natural gas. Through a diversified energy supply system, we aim to reduce costs and enhance operational efficiency. And on your third question, our future strategic direction, we will remain focused on optimizing our mining operations, enhancing efficiency and exploring new market opportunities. At the same time, we will strengthen our partnerships to jointly drive industry advancements. And we will also continue to proactively pursue sustainable and more cost-efficient energy sources. Operator [Jack Sun, Elonxi Research]. I have 3 questions. The first question is that, well, the Bitcoin mining business actually accounted for 99% of your quarterly revenue. So do you see any concentration risk in terms of your revenue stream here? And what is your plan to balance or diversify your business lines? And my second question is regarding the operating loss. So do you consider using derivatives to hedge against volatilities in your fair value? And my third question is regarding cash flow. Investors are interested in cash flow positions. So my question is, do you have any plan in the future for equity financing or other financing plans? Lin Jiayuan On your first question, while the majority of our revenue currently comes from Bitcoin mining, we believe that focusing on mining at this stage is aligned with our overall strategy. Meanwhile, we remain confident in the potential of our used car export business and will concentrate on operating AutoCango, our asset-light platform for used car exports. Looking ahead, we plan to gradually explore additional business opportunities based on market conditions to diversify our operations. At the same time, we will continue to refine our mining business to ensure its stable and sustainable growth. On your second question on operating loss. Well, the operating loss in this quarter was primarily due to the decline in Bitcoin prices in March, and we believe that fluctuations in Bitcoin's price are primarily short term in nature, and we remain confident in its long-term value. In addition, we are introducing risk management tools in phases. For the near term, we are signing medium- to longer-term contracts with power suppliers to lock in electricity prices and reduce cost pressures. And at the same time, we are actively seeking low-cost renewable energy sources. Looking ahead, we are also exploring the feasibility of more relevant risk management tools and will adopt them prudently to mitigate new potential risks. Regarding cash flow, we currently have sufficient liquidity to support mining operations at 32 exahashes per second, including a USD400 million annual credit facility provided by our partners. Given our relatively low debt-to-equity ratio, we still have ample room to take on additional leverage. As such, we plan to prioritize debt financing over equity financing. Operator Michael Donovan, H.C. Wainwright. Michael Donovan It's Michael Donovan from Kevin Dede's team. Let's start with the 18 exahash you still have to deploy. Can you provide more clarity on that? And has the deal with Ursalpha been finalized? And you mentioned July. So when can we expect the 18 exahash to be online at the end of July? Or is there anything that would hold this up? And then my second question is around your Bitcoin HODL strategy that you mentioned on the call. Do you have any plans to use your Bitcoin in terms of lending or have any plans to earn yield on the Bitcoin? Lin Jiayuan Thank you for your questions. I will hand over your questions to our CFO, Yongyi Zhang. Zhang Yongyi Thank you for your question. So on your first question on the 18 EH deal, actually, we expect to complete -- to close the deal by the end of July because we have already reached agreements on the main plans and except for the -- some small details, and we still -- we are still finalizing the small details. To be more specific about the terms and conditions revisions. Actually, in April, we received some -- also a request on our domestic or PRC deal. So that's why we need to make some revisions to the 18 EH due terms and conditions. So in fact, our plan is that for this February -- sorry, I mean, this Friday, we are going to have AGM, Extraordinary Shareholders Meeting, I mean, to have the Shareholders Meeting to deliberate the PRC deal. And so we expect that after the Extraordinary Shareholders Meeting, then we will be able to complete the PRC deal and then thereby completing our planned revision to the 18 EH deal. On your second question, yes, our strategy is Mine and Hold. So right now, our focus is still on increasing our Bitcoin holdings. However, when our holdings reach a certain size, then we will definitely consider taking on some transactions to improve to earn more yields on Bitcoin. Operator And that concludes our question-and-answer session. Thank you once again for joining Cango's first quarter 2025 earnings conference call today. Have a great day.
Cision Canada
07-05-2025
- Business
- Cision Canada
Cango Inc. Maintains Strong Mining Efficiency and Expands Bitcoin Holdings Amidst April Production Shift
SHANGHAI, May 7, 2025 /CNW/ -- Cango Inc. (NYSE: CANG), a leading bitcoin mining company, recently released its April 2025 production update for its crypto mining operations. In April 2025, Cango mined a total of 470.0 Bitcoins, an 11.3% decrease compared to 530.1 Bitcoins mined in March 2025. The average daily Bitcoin production was 15.7 in April, compared to 17.1 in March. Despite the month-over-month production dip, Cango increased its total Bitcoin holdings, reaching 2,944.8 as of April 30, 2025, up from 2,474.8 at the end of March. The Company's deployed hashrate remained consistent at 32 EH/s, while the average operating hashrate was 29.9 EH/s, compared to 30.3 EH/s in March 2025. "The production decline in April was mainly due to a significant surge in the global hashrate, marking its second-largest monthly increase ever recorded. Consequently, the mining difficulty rose by 8% compared to March," said Jiayuan Lin, Chief Executive Officer of Cango, "Despite this short-term fluctuation in production volume, we remain firmly committed to our Bitcoin holding strategy. With the current value of our Bitcoin holdings at $279 million, we are confident that our strategic initiatives and ongoing operational enhancements will continue to generate long-term value for our stakeholders." About Cango Inc. Cango Inc. (NYSE: CANG) primarily operates a leading Bitcoin mining business. Cango has deployed its mining operation across strategic locations including North America, Middle East, South America, and East Africa. Cango expanded into the crypto assets market in November 2024, driven by the development in blockchain technology, increasing prevalence of crypto assets and its endeavor to diversify its business. Meanwhile, Cango has continued to operate the automotive transaction service in China since 2010, aiming to make car purchases simple and enjoyable. For more information, please visit:
Cision Canada
29-04-2025
- Business
- Cision Canada
Cango Inc. Gains Positive Outlook with Initiation of Coverage by Apollo Insights
, April 29, 2025 /CNW/ -- Cango Inc. (NYSE: CANG) ("Cango" or the "Company"), a rapidly expanding leader in Bitcoin mining, announced the initiation of coverage by Apollo Insights, an independent equity research firm. Apollo Insights initiated coverage on Cango on April 22, 2025, following the release of its equity research report and investment thesis titled "Cango Catapults Into Bitcoin Mining". The equity research report highlights include: The Company has a market capitalization of $387.1 million The 12-month low and high for the Company's stock is $1.33 and $8.00, respectively. Apollo Insights estimates that Cango's fiscal 2025E revenue and adjusted EBITDA will reach RMB3,913.2 million and RMB665.6 million, respectively In fiscal 2026E, revenue and adjusted EBITDA are projected to reach RMB4,644.6 million (an 18.7% year-over-year increase) and RMB1,185.2 million (a 78.1% year-over-year increase), respectively. The firm attributes its favorable outlook for Cango to a supportive regulatory environment under the Trump administration and the potential for greater clarity in cryptocurrency regulations. The initiation of coverage underscores Cango's remarkable rise in the Bitcoin mining industry in a short time. The Company has developed its mining operation at a lower cost and reduced operational risks through strategic partnerships for acquiring Bitcoin mining equipment. This higher overall operating efficiency ensured the Company generated an average operating hash rate of 30.3 exahash/second (EH/s) in March 2025, placing Cango in joint second for the highest operating hashrate in the month. The Company's capital-light model has helped it accumulate holdings of approximately 2,475 Bitcoin as end-March 2025, valued at roughly US$211 million as of April 17, 2025. Cango has not sold any of its Bitcoin holdings yet. Overall, as of March 2025, Cango ranks as the fifth-largest Bitcoin mining player by deployed hashrate, achieving 32 EH/s in just four months. The report projects that its deployed hashrate will reach 42 EH/s by the end of FY25E. Since entering the Bitcoin mining industry in November 2024, Cango has expanded its global footprint across strategic regions. Its mining operations now span the U.S. (38%), East Africa (37%), Oman (15%), Paraguay (9%), and Canada (1%). Click here to view Apollo Insights' full equity research report and investment thesis on Cango. About Cango Inc. Cango Inc. (NYSE: CANG) primarily operates a leading Bitcoin mining business. Cango has deployed its mining operation across strategic locations including North America, Middle East, South America, and East Africa. Cango expanded into the crypto assets market in November 2024, driven by the development in blockchain technology, increasing prevalence of crypto assets and its endeavor to diversify its business. Meanwhile, Cango has continued to operate the automotive transaction service in China since 2010, aiming to make car purchases simple and enjoyable. For more information, please visit: Media Contact SOURCE Cango Inc.
