Cango Inc., a former Chinese auto financing and trading company, reported a $452.8 million net loss for 2025 — its first full year operating as a Bitcoin miner. The company generated $688.1 million in revenue, mining 6,594.6 BTC, according to unaudited results released Monday.
Heavy Losses from Mining Costs
Cango made a rapid pivot into Bitcoin mining in late 2024, scaling its hash rate and production to around 50 EH/s, putting it close to major miners like MARA Holdings (~58 EH/s) and CleanSpark (~45–50 EH/s). That scale helped the company generate $675.5 million in mining revenue in 2025.
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Despite strong production, the company faced $338.3 million in losses on mining equipment due to falling equipment values and accounting adjustments. These non-cash charges were the main driver of the net loss. The fourth quarter was particularly tough, with high operating costs and declining equipment values further weighing on results.
Capital-Intensive Operations
The company’s first year in mining involved significant operating costs, including $338.3 million in impairment losses on mining machines.
Even as Bitcoin production grew, total operating expenses exceeded income, showing the challenge of turning mining operations profitable quickly.
The company is also expanding into AI computing and energy projects, aiming to offset the ups and downs of Bitcoin mining with other sources of revenue.
Bitcoin Miners Pivot to AI and HPC
The company’s shift mirrors a broader trend in the industry. Major miners like MARA Holdings and Core Scientific are reducing reliance on traditional mining and moving into AI and high-performance computing (HPC).
Core Scientific is repurposing its infrastructure for AI workloads, while MARA partnered with Starwood Digital Ventures to build up to 2.5 gigawatts of IT capacity for AI.
Bitdeer Technologies sold its Bitcoin treasury to invest in AI and HPC, and Cipher Digital rebranded to highlight HPC while securing funding for data center expansion, reflecting a growing trend of diversifying revenue beyond crypto mining.
Why This Matters
Cango’s loss highlights the financial challenges facing new Bitcoin miners, showing that high production alone does not guarantee profitability in a volatile market.
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People Also Ask:
Bitcoin mining is the process of verifying transactions on the Bitcoin network. Miners use specialized computers to solve complex mathematical problems, adding blocks to the blockchain and earning Bitcoin as a reward.
Mining requires powerful hardware, lots of electricity, and cooling systems. Equipment can also lose value quickly due to new technology or market fluctuations, making it a capital-intensive business.
Impairment losses occur when the value of mining equipment falls below its original cost. These are non-cash accounting adjustments that reduce reported profits.
