Key Highlights
- Cango liquidated 2,000 BTC (approximately $143M) during March to settle Bitcoin-collateralized loans
- Company reduced loan obligations to $30.6M while maintaining 1,025.69 BTC in reserves
- Production expenses per Bitcoin decreased 19.3% to $68,216, compared to $84,552 in the fourth quarter of 2024
- Mining capacity currently reaches 37.01 EH/s through combined owned operations and leasing contracts
- Freed capital will be allocated toward artificial intelligence and energy sector projects
Cango Inc. liquidated 2,000 Bitcoin during March, deploying the funds to eliminate cryptocurrency-backed loans. Based on prevailing market rates, the transaction generated approximately $143 million.
The divestiture reduced Cango’s loan obligations to $30.6 million. The firm retained 1,025.69 BTC in its corporate reserves as of March 31, representing a value exceeding $73 million.
This strategic move came after company executives contributed $65 million through equity participation, complemented by a $10 million convertible debt instrument from DL Holdings, both strengthening the company’s financial position.
Cango simultaneously achieved a reduction in Bitcoin mining expenses to $68,216 per unit during March. This represents a 19.3% decline from the $84,552 per coin recorded in the fourth quarter of 2024.
The efficiency gains weren’t achieved through expansion. Instead, Cango retired outdated, inefficient equipment and relocated activities to jurisdictions offering more competitive electricity rates.
For higher-cost operational zones including Paraguay and Oman, the organization is installing its most advanced mining equipment — specifically the S21 and S21XP models. Additionally, the company has implemented profit-sharing arrangements with facility operators at certain locations to preserve profitability while avoiding full operational expense absorption.
Mining Capacity and Current Operations
Cango’s aggregate hashrate reached 37.01 EH/s as of March 31. Within that total, 27.98 EH/s originated from proprietary mining operations, while 9.02 EH/s came through hashrate rental agreements.
The rental framework enables Cango to generate revenue from expensive locations without shouldering complete operational burdens.
Management characterizes its strategy as a “streamlined production framework” emphasizing profitability sustainability over simple capacity expansion.
Strategic Shift Toward Artificial Intelligence
Cango has announced intentions to channel resources liberated through debt reduction into AI computational infrastructure. Management believes its current energy assets and operational facilities provide an ideal foundation for this transformation.
This strategy mirrors broader industry trends. MARA recently divested $1.1 billion worth of Bitcoin while reducing headcount by 15%. Core Scientific has explored complete liquidation of its BTC treasury to finance AI operations. Cipher Digital executed a 15-year infrastructure agreement to transition toward data center services.
Bitcoin currently trades near $71,329, remaining approximately 43% beneath its record peak of $126,080 established last October. This sustained price weakness has compelled mining operations to scrutinize per-unit economics and pursue diversified income sources.
Notwithstanding Wednesday’s 3.3% uptick, CANG shares have declined nearly 39% during the past 30 days and have dropped over 80% across the preceding six-month period.
Bitcoin registered approximately 4% gains at publication time, benefiting from provisional ceasefire developments between the United States and Iran.
