Cango (CANG) Stock Plummets 21% as Bitcoin Mining Revenue Drops by Half in Q2

Key Takeaways

• Shares of Cango plunged over 21% following disclosure of an $81.6 million net loss in Q2 2026.
• Quarterly revenue reached $50.8 million, representing approximately 50% drop from the prior quarter, with bitcoin mining contributing $47.4 million.
• During Q2, the firm extracted 656 BTC and maintains holdings of 1,065 BTC valued at approximately $82.8 million.
• Operational hashrate measured 27.58 EH/s following the retirement of legacy S19 mining equipment.
• Earnings per share registered at ¥-13.370, falling short of the ¥-6.820 analyst projection by ¥6.55.

Shares of Cango (CANG) traded at approximately $1.89 on Tuesday, declining more than 21% following the cryptocurrency mining company’s disclosure of an $81.6 million net loss for the second quarter.

Cango Inc., CANG

The quarterly performance significantly underperformed Wall Street projections. Earnings per share registered at ¥-13.370, representing a miss of ¥6.55 compared to the analyst consensus of ¥-6.820. Revenue totaling ¥341.24 million similarly disappointed, coming in substantially below the ¥577.37 million forecast.

Second quarter revenue totaled $50.8 million, representing approximately half the figure generated in the first quarter. Cryptocurrency mining operations contributed $47.4 million to the quarterly total.

The dramatic revenue contraction stemmed from strategic operational adjustments. Cango retired older S19 generation mining equipment while transitioning portions of its capacity to a hosted leasing arrangement, characterizing the strategy as a necessary “right-sizing” of mining activities.

As of June 30, Cango’s operational hashrate decreased to 27.58 EH/s. This figure comprised 19.94 EH/s from proprietary mining operations and 7.74 EH/s from leasing arrangements.

The firm extracted 656 Bitcoin throughout the quarter. At the conclusion of Q2, treasury holdings stood at 1,065 BTC, representing approximately $82.8 million in current market value.

Regarding operational expenses, modest improvements emerged. The streamlined equipment fleet enabled a reduction of roughly 5% in average cash cost per bitcoin mined compared to Q1, decreasing to approximately $73,313. Additionally, Cango has implemented hedging strategies for its bitcoin holdings to mitigate price volatility.

Strategic Emphasis on Unit Economics

Chief Executive Officer Paul Yu indicated the organization is prioritizing “unit economics rather than scale” within its cryptocurrency mining operations. This strategic reorientation signals a departure from simple hashrate expansion.

Simultaneously, Cango has initiated development of artificial intelligence infrastructure. The company is repurposing its Georgia mining facility to accommodate GPU computing capabilities, with the location designed to support up to 3 MW.

Expansion into Artificial Intelligence

Income generation from the Georgia GPU facility is anticipated to commence during the third quarter. This projection positions Q3 financial results as a critical indicator of whether the AI diversification strategy is producing meaningful revenue.

CANG shares have declined 42.69% during the previous three-month period and fallen 89.76% over the trailing twelve months.

InvestingPro assigns Cango’s financial condition a “fair performance” rating.