Cango (CANG), a company that transitioned from automotive services to Bitcoin mining, reported a staggering net loss of $452.8 million for the full year 2025 despite generating $688.1 million in total revenue. The company's mining division was responsible for $675.5 million of that revenue, producing 6,594 BTC during the year. However, profitability was severely impacted by impairment charges on mining machines, fair value losses due to Bitcoin's price volatility, and high production costs that reached approximately $97,000 per Bitcoin on an all-in basis.
In a strategic shift, Cango sold 4,451 BTC in February 2026 to reduce debt and finance its new direction. The company had held 2,537 BTC on its balance sheet at the end of 2025 and had previously sold approximately 1,900 Bitcoin in January for around $175 million. These sales mark a departure from a HODL strategy to active capital management, with proceeds being used to "reduce the overall finance leverage and strengthen the balance sheet" according to company statements.
Management is now focused on repositioning the business toward artificial intelligence infrastructure. CEO Paul Yu stated the firm is "advancing our pivot to become an AI infrastructure provider," adding that its EcoHash platform aims to deliver "flexible, cost-effective AI inference solutions." CFO Michael Zhang attributed the losses to "non-recurring transformation costs" while emphasizing efforts to secure capital for AI investments.
This Bitcoin-to-AI pivot reflects a broader industry trend where public miners are selling bitcoin to fund AI developments. The shift is driven by declining mining margins and rising demand for high-performance computing, prompting miners to repurpose infrastructure and monetize BTC holdings to access the faster-growing AI market. Cango shares currently trade around $0.68, down 43% over the past three months.
