Key Highlights
- The company liquidated 2,000 BTC (approximately $143M) during March to settle Bitcoin-collateralized loans
- Debt obligations decreased to $30.6M, while treasury holdings stand at 1,025.69 BTC
- Per-coin production expenses dropped 19.3% to $68,216, compared to $84,552 during Q4 2024
- Combined hashrate reaches 37.01 EH/s through owned operations and leasing contracts
- Strategic pivot toward AI computing and energy infrastructure planned
Cango Inc. liquidated 2,000 Bitcoin during March, deploying the funds to settle cryptocurrency-backed lending obligations. Based on prevailing market rates, the transaction generated approximately $143 million.
The liquidation reduced Cango’s remaining loan obligations to $30.6 million. Treasury reserves stood at 1,025.69 BTC as of March 31, representing a value exceeding $73 million.
This strategic action arrived following a $65 million equity capital injection from senior company executives and a $10 million convertible bond arrangement with DL Holdings, both contributing to improved financial positioning.
Cango achieved a reduction in Bitcoin mining expenses to $68,216 per unit during March. This represents a 19.3% decline compared to the $84,552 per-coin cost recorded in Q4 2025.
The expense reduction resulted from operational optimization rather than expansion. Cango retired outdated, power-intensive mining equipment while relocating activities to jurisdictions offering reduced electricity rates.
For high-cost facilities in Paraguay and Oman, the firm deployed its most power-efficient equipment — including S21 and S21XP models. The company implemented revenue-sharing agreements with hosting providers at certain locations to preserve profit margins while minimizing direct operational expenditure.
Computing Power and Operations Overview
Cango’s aggregate hashrate measured 37.01 EH/s on March 31. Direct mining operations contributed 27.98 EH/s, while hashrate leasing contracts accounted for 9.02 EH/s.
The leasing structure enables Cango to generate income from expensive locations without bearing complete operational costs.
Management characterizes its strategy as a “lean-production model” emphasizing profitability sustainability over pure capacity expansion.
Artificial Intelligence Infrastructure Transition
Cango announced intentions to allocate capital released through debt reduction toward artificial intelligence computing infrastructure. Company leadership views existing power resources and operational facilities as advantageous foundations for this transformation.
This strategy mirrors current sector trends. MARA liquidated $1.1 billion worth of Bitcoin while reducing headcount by 15%. Core Scientific evaluated selling its complete BTC reserves to finance an AI-focused pivot. Cipher Digital executed a 15-year infrastructure agreement to transition toward data center services.
Bitcoin trades around $71,329 presently, approximately 43% below the $126,080 peak reached in October of the previous year. Market pressure has compelled mining operators to scrutinize unit economics and explore diversified revenue opportunities.
Wednesday’s 3.3% gain occurred amid a 39% monthly decline for CANG shares, which have fallen over 80% across the past six months.
Bitcoin appreciated roughly 4% during the trading session at publication time, supported by conditional ceasefire developments between the United States and Iran.
