Cango's 2024 Q4 Earnings Call: Contradictions in Strategic Focus, Bitcoin Mining, and Price Expectations

These are the key contradictions discussed in Cango's latest 2024Q4 earnings call, specifically including: Business Transformation and Strategic Focus, Bitcoin Mining Strategy, Automotive Business Focus, and Bitcoin Price Expectations:



Transformation and Growth in Bitcoin Mining:
- Cango, Inc. reported total net revenue of RMB 670 million in Q4 2024, representing a year-on-year surge of over 400%.
- The transformation was driven by the approval of Bitcoin ETFs in the United States, which marked a significant turning point for the cryptocurrency industry, leading the company to expand into the cryptocurrency sector.

Reduction in Outstanding Loan Balance:
- Cango's outstanding loan balance decreased from a peak of over RMB 40 billion to approximately RMB 3.9 billion by the end of 2024.
- This decrease was a result of the company's strategic transition from auto financing facilitation to automotive transaction services and a focus on loan collection and personal management of outstanding loans.

Strategic Expansion into Bitcoin Mining:
- Cango successfully mined 933.8 Bitcoins by the end of 2024, with mining machines maintaining an average operating hashrate of 90%.
- The expansion was driven by the company's positive outlook on Bitcoin's future potential and the need for energy solutions to balance grid loads and utilize surplus electricity, especially amidst the global surge in computing power demand driven by advancements in artificial intelligence.

Automotive Transaction Services and International Expansion:
- Cango's automotive transaction services provided customers with a convenient and efficient used car trading experience, with plans to export 1,500 used cars in 2025 with a total value of USD 15 million.
- The focus on this segment was driven by the company's aim to become a leading asset-light gateway for China's used car exports and the recognition of the potential in international markets.