End of Bitcoin Mining? Cango’s Stock Plummets by 85% Amid $285 Million Loss

In the ever-evolving world of cryptocurrency, recent events surrounding Bitcoin mining have raised eyebrows. Cango Inc., renowned for its ambitious mining operations, finds itself grappling with significant financial challenges. As reported in their latest financial findings, the company recorded a staggering net loss of $285 million in the fourth quarter of 2025.

Soaring Mining Expenses and Asset Write-offs

Cango’s troubles stem from escalating operational costs and substantial asset write-offs. The expenses for mining skyrocketed to an astonishing $106,251 per Bitcoin during this period. This reflects a significant rise in costs as the company scaled its operations. Notably, an equipment write-off valued at $81.4 million contributed heavily to these expenses.
Furthermore, Cango encountered a loss of $171.4 million due to changes in the fair value of accounts receivable secured by Bitcoins. Despite generating revenue amounting to $179.5 million in Q4 2025—primarily from Bitcoin mining activities—the operational costs ballooned to an overwhelming $456 million.

Year-End Financial Overview

For the entirety of 2025, Cango reported a net loss amounting to $452.8 million against revenues totaling $688.1 million. Throughout the year, the company successfully mined approximately 6,594 Bitcoins—equivalent to around 18 Bitcoins daily.
Michael Zhang, Cango’s Chief Financial Officer, emphasized their strategic focus on optimizing balance sheet management through adjusted treasury policies involving Bitcoin and liquidity management.

Stock Market Impact and Business Restructuring

Cango’s financial woes have significantly impacted its stock performance on the NYSE. Since October 2025, share prices have plummeted from around $4.50 to just about $0.68—an almost 85% decline within six months. As investors react warily to these drastic transformations, shares were trading at approximately $0.59 at pre-market levels.
Amidst these challenges lies an ongoing shift in business strategy: In early 2025, Cango divested its auto financing division for $352 million and redirected focus towards expanding its computing power for enhanced Bitcoin mining capabilities and exploring artificial intelligence applications.
By February 2026—a pivotal moment for securing additional capital—the firm raised another substantial sum through equity issuance while offloading thousands upon thousands worth roughly millions more dollars’ worth—that translated into reducing outstanding debts significantly: precisely what needed most when battling against mounting liabilities like those experienced recently!
Looking ahead toward future prospects involves leveraging existing infrastructure not only within realms traditionally associated solely with cryptocurrencies but also branching out beyond them altogether into AI sectors where potential limitless possibilities could await discovery next horizon!