Cango's Q1 2025: Navigating the Contradictions of Cryptocurrency Market Trends and Strategic Responses

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Bitcoin Mining Revenue and Operations:
- Cango reported total revenue of $145 million in Q1 2025, with $144 million contributed by Bitcoin mining operations, representing 99% of total revenue.
- The growth was driven by the company's entry into the Bitcoin mining industry in November 2024 and the stability of Bitcoin as a safe haven asset despite market volatility.

Hash Rate Expansion and Efficiency:
- Cango holds a total computing power of 32 exahashes per second, accounting for approximately 4% of the global average hash rate in Q1 2025.
- The company aims to expand its hash rate capacity to 50 eh by the end of July 2025, with an average monthly effective hash rate consistently exceeding 30 exahashes per second, demonstrating high efficiency.

Operational and Financial Challenges:
- Cango reported an operating loss of $21.42 million in Q1 2025, primarily due to a decline in Bitcoin prices towards the end of March, which led to a decrease in the fair value of the company's Bitcoin holdings.
- The company is experiencing relatively high electricity costs due to premiums associated with power procurement under the hosted operation model, which it is addressing through a global energy strategy.

Strategic Focus on Bitcoin and AutoCango:
- Cango remains focused on deepening its commitment to the Bitcoin mining business, adopting a Mine and Hold strategy, and prioritizing both self-mining and long-term holding.
- The company continues to operate its asset-light used car export platform, AutoCango, which has attracted over 2.37 million visits and more than 290,000 registered users since its launch.