Cango: HC Wainwright Reiterates Buy Rating, Raises PT to $8.

Cango: HC Wainwright Reiterates Buy Rating, Raises PT to $8.

Cango Inc. (CANG) has received a boost from financial analysts at HC Wainwright, who have reiterated their buy rating on the stock and raised their price target to $8.00. The firm's latest research report, released on September 2, 2025, highlights Cango's strategic pivot to Bitcoin mining and its potential long-term growth prospects.

The report acknowledges Cango's significant challenges in Q2 2025, including a RMB 2.1 billion net loss driven by one-off charges. However, it emphasizes the company's operational resilience, noting that excluding these charges, Cango generated an adjusted EBITDA of RMB 710.1 million, with Bitcoin mining accounting for 98.9% of total revenues [1].

HC Wainwright's bullish outlook is supported by Cango's aggressive expansion into renewable energy and its asset-light model. The company's recent acquisition of a 50 MW mining facility in Georgia, USA, is seen as a strategic move to reduce energy costs and enhance scalability [5]. The report also praises Cango's focus on low-cost, clean energy, aligning with broader ESG trends and potential operational cost savings.

Despite the positive outlook, the report cautions investors about the risks associated with Cango's strategy. The lack of concrete renewable energy procurement agreements in 2025 raises concerns about the company's ability to secure low-cost energy and achieve its sustainability goals [7]. Additionally, the report notes that Cango's valuation hinges on its ability to execute its integrated energy-HPC platform vision and secure low-cost energy deals.

In conclusion, HC Wainwright's reiteration of the buy rating and price target increase reflects their confidence in Cango's long-term growth potential. However, investors should remain mindful of the risks associated with the company's strategy and closely monitor its ability to secure low-cost energy partnerships and execute its vision.

References:
[1] Earnings call transcript: Cango Inc. Q2 2025 reveals unexpected loss [https://www.investing.com/news/transcripts/earnings-call-transcript-cango-inc-q2-2025-reveals-unexpected-loss-93CH-4225908]
[5] Cango Inc. Acquires 50 MW Bitcoin Mining Facility in Georgia, Laying Groundwork for Future Energy Strategy [https://captainaltcoin.com/cango-inc-acquires-50-mw-bitcoin-mining-facility-in-georgia-laying-groundwork-for-future-energy-strategy/]
[7] Cango Inc. Announces Definitive Agreements to Dispose PRC Business [https://www.stocktitan.net/news/CANG/cango-inc-announces-definitive-agreements-to-dispose-prc-aclz1za9koh4.html]