Cango's Q1 2025: Strategic Contradictions in Bitcoin Mining, Pricing, and Diversification

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Bitcoin Mining Revenue and Growth:
- Cango reported total revenue of $145 million for Q1, with $144 million contributed by Bitcoin mining operations.
- This significant growth is due to Cango's entry into the Bitcoin mining industry in November 2024 and its expanding hash rate capacity.

Hash Rate 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.
- The company's efficiency rate is as high as 94%, with an average power efficiency of 21.6 joules per tera hash.

Financial Performance and Challenges:
- Cango faced an operating loss of $21.42 million, primarily due to a decline in Bitcoin prices towards the end of March, leading to a decrease in the fair value of the company's Bitcoin holdings.
- Despite this, the company maintains a strong cash position with $347 million in total cash, cash equivalents, and short-term investments.

Strategic Focus and Energy Optimization:
- Cango is committed to deepening its focus on the Bitcoin mining business, with a Mine and Hold strategy prioritizing both self-mining and long-term holding.
- The company is addressing high electricity costs by launching a global energy strategy, including renegotiating hosting agreements and exploring partnerships in low-cost clean energy projects.

Used Car Export Business:
- AutoCango, Cango's used car export platform, has attracted over 2.37 million visits and more than 290,000 registered users, with 480,000 used car listings covering 68,000 unique models.
- Cango remains focused on lean asset-light operations for AutoCango, aiming to connect China's used car market with overseas buyers.