Cango 2025 Q3 Earnings Net Income Falls 45% Amid Bitcoin Mining Surge

Cango (CANG) reported a 60.6% sequential revenue increase to $224.6 million in Q3 2025, driven by Bitcoin mining operations. However, net income declined 45% year-over-year to $37.3 million, reflecting a challenging operating environment despite the revenue surge.

Revenue

Cango’s Bitcoin mining segment generated $220.9 million in revenue, accounting for 98.3% of total income. International automobile trading contributed $3.28 million, while other revenue streams added $491,646. The company’s total revenue reached $224.6 million, a 747.4% increase from $26.45 million in the same period in 2024.

Earnings/Net Income

Cango’s earnings per share (EPS) fell 66.7% to $0.11 in Q3 2025 from $0.33 in Q3 2024. Net income dropped to $37.3 million, a 45.0% decrease from $67.88 million in the prior-year period. The EPS decline reflects a challenging operating environment despite the surge in Bitcoin mining revenue.

Post-Earnings Price Action Review

The strategy of buying Cango shares 30 days after the earnings release date, when revenue equals the previous quarter’s revenue, has shown poor performance over the past three years. With a CAGR of 3.33%, total return of 9.31%, and excess return of -65.40%, the strategy underperformed benchmarks. A Sharpe ratio of 0.04, combined with a volatility of 82.05% and a maximum drawdown of 0.00%, highlights its risk profile.

CEO Commentary

CEO Paul Yu emphasized Cango’s 60.6% sequential revenue growth to $225 million, driven by Bitcoin mining output of 1,930.8 BTC (37.5% higher than Q2). Strategic upgrades, including T21/S21 miner deployments and a 50-megawatt Georgia facility, aim to lower costs and enhance operational efficiency. The company outlined a long-term vision of building a global, distributed AI compute network powered by green energy, with Bitcoin mining as the foundational step.

Additional News

Cango terminated its ADR program and transitioned to a direct NYSE listing to streamline its capital structure and align with strategic priorities. The company also announced clean energy projects in Oman and Indonesia, expected to support future AI infrastructure. Management reiterated a “mine and hold” strategy for Bitcoin, retaining all mined assets as strategic reserves. These moves underscore Cango’s pivot from automotive services to a diversified energy and AI compute platform.

Guidance

Cango did not provide specific guidance for future quarters but emphasized maintaining operational discipline and exploring partnerships to mitigate market risks. The company plans to expand its AI roadmap through GPU computing leasing and regional data center hubs, with a long-term goal of a global green-energy-powered compute network.

Price Action

Cango’s stock price dropped 7.75% in the latest trading day, 6.43% over the past week, and 65.80% month-to-date, reflecting market skepticism despite strong revenue growth and Bitcoin output.

Financial Summary

• Total Revenue: $224.6 million (+60.6% QoQ, +747.4% YoY)

• Bitcoin Mining Revenue: $220.9 million (98.3% of total)

• Net Income: $37.3 million (-45.0% YoY)

• Adjusted EBITDA: $80.1 million

• Bitcoin Mined: 1,930.8 BTC (37.5% QoQ increase)

• Average Operating Hashrate: 46.09 EH/s (October)

• All-in Mining Cost: $99,383 per BTC

Strategic Outlook

Cango’s transition to Bitcoin mining and AI compute infrastructure positions it for long-term growth. However, volatility in Bitcoin prices and operational costs remain key risks. The company’s focus on green energy projects and strategic partnerships could enhance resilience amid market fluctuations.