Cango 2025 Q3 Earnings Net Income Surges 291.8% Amid Bitcoin Mining Expansion

Cango (CANG) reported fiscal 2025 Q3 results on Dec 2, 2025, showcasing a 60.6% sequential revenue jump to $224.64 million and a 291.8% net income surge. The stock, however, fell 6.9% post-earnings amid market skepticism. The company emphasized strategic shifts toward AI compute networks and green energy projects, with Bitcoin mining output rising 37.5% to 1,930.8 BTC.

Revenue

Cango’s revenue growth was driven by its Bitcoin mining segment, which generated $220.86 million, accounting for over 98% of total revenue. International automobile trading contributed $3.28 million, while other segments added $491,646. The total revenue of $224.64 million reflects a dramatic turnaround from $0 in the prior year’s quarter, underscoring the company’s pivot to crypto mining.

Earnings/Net Income

Earnings per share (EPS) surged 120% to $0.11, while net income ballooned to $37.32 million, a 291.8% increase from $9.52 million in 2024 Q3. The robust performance highlights improved operational efficiency, with Bitcoin mining costs averaging $81,072 per coin (excluding depreciation). This earnings growth outperformed expectations for a company transitioning from automotive services to crypto and AI infrastructure.

Price Action

Post-Earnings Price Action Review

The strategy of buying Cango shares 30 days after the earnings release, when revenue equals the prior quarter’s, has underperformed over three years, with a CAGR of 3.33%, total return of 9.31%, and excess return of -65.40%. Despite the earnings beat, the stock’s 65.8% month-to-date drop reflects market jitters over Bitcoin price volatility and the company’s high-risk AI and green energy bets. The Sharpe ratio of 0.04 and 82.05% volatility further underscore the strategy’s poor risk-adjusted returns.

CEO Commentary

CEO Peng Yu highlighted a 60.6% sequential revenue growth, driven by Bitcoin mining and an asset-light model. The company mined 1,930.8 BTC, a 37.5% increase, with operational efficiency exceeding 90% uptime. Strategic priorities include transitioning to a global AI compute network powered by green energy, with pilots in Oman and Indonesia expected in 1–2 years. Leadership emphasized disciplined expansion, prioritizing hashrate optimization over scale, and leveraging Bitcoin as a “practical on-ramp” to broader energy and compute ambitions.

Guidance

Cango provided no explicit financial guidance but outlined qualitative goals: phased AI compute pilots with clear IRR thresholds, clean energy projects in Oman and Indonesia to support AI infrastructure within 1–2 years, and flexibility to adjust high-cost mining sites amid market volatility. The CEO reiterated confidence in Bitcoin’s role as a gateway to the company’s long-term energy and compute strategies.

Additional News

1. Strategic Expansion: Cango announced plans to build a global distributed AI compute network powered by renewable energy, with pilot projects in Oman and Indonesia set for 1–2 years.

2. Currency Transition: The company shifted its reporting currency from RMB to USD, enhancing transparency and aligning with its U.S.-listed operations.

3. Operational Milestones: Cango terminated its ADR program, transitioning to a direct NYSE listing, and achieved an average hashrate of 46.09 EH/s in October, up from 40.91 EH/s in July.

The stock’s mixed post-earnings reaction reflects investor caution despite strong operational metrics. Cango’s focus on Bitcoin mining and AI infrastructure positions it at the intersection of high-growth and high-risk sectors, with execution on green energy and compute projects critical to long-term success.