Cango Shares Plunge Over 20% After $81.6 Million Q2 Loss as Bitcoin Mining Revenue Halves
NYSE-listed Bitcoin miner Cango had a rough trading day this week, and the numbers behind the sell-off tell a clear story of a company deliberately shrinking its mining footprint faster than its revenue could keep pace.
Shares dropped more than 20% after Cango reported its second-quarter results. The headline figures:
- Net loss: $81.6 million for the quarter
- Total revenue: $50.8 million, down roughly 50% from the first quarter
- Bitcoin mining revenue specifically: $47.4 million of that total
- Non-cash charges driving the loss: $42.9 million in impairment losses plus $8.5 million in disposal losses tied to mining equipment, a combined $51.4 million
- Operating hashrate as of June 30: 27.58 EH/s, made up of 19.94 EH/s of self-mining capacity and 7.74 EH/s of leased capacity
- Bitcoin mined during the quarter: 656 BTC
- Bitcoin held in reserve at quarter-end: 1,065 BTC, worth roughly $82.8 million at the time
- Average cash cost per bitcoin mined: approximately $73,313, an improvement from the first quarter
The numbers reflect a strategy shift rather than a company simply losing ground to rising energy costs or difficulty. Cango has been deliberately phasing out older-generation S19 mining rigs and shifting some of its remaining capacity toward a hosted leasing model instead of pure self-mining. Most of the quarter’s loss came directly from writing down and disposing of that aging equipment — a one-time hit tied to the transition rather than an ongoing drain, at least in theory.
Management has been explicit that the goal now is efficiency over raw scale. The company has framed its approach around what it calls “unit economics rather than scale” in its legacy mining business, and the smaller, leaner fleet did produce a lower average cash cost per coin mined compared to the prior quarter. That’s the one clearly positive data point buried inside an otherwise difficult set of results.
Cango is also actively diversifying away from pure Bitcoin mining. The company has been converting its Georgia mining site to support GPU computing for AI workloads, with the site expected to support up to 3 megawatts of capacity and related revenue projected to begin arriving in the third quarter. Whether that pivot cushions future quarters or simply adds a new source of execution risk on top of an already volatile mining business is the open question investors are now pricing in.
Bitcoin mining stocks carry combined exposure to BTC price swings, energy costs, and equipment depreciation, making them considerably more volatile than the underlying asset. This is not financial advice. To understand how Bitcoin mining economics actually work, see coin680’s Bitcoin Academy.