Recently, Cango Inc. (CANG.US) management attended the HC Wainwright investment summit in New York, engaging in in-depth discussions with institutional investors about the company's strategic transformation progress. As a leading U.S. analytical institution, HC Wainwright first assigned Cango Inc. an $8 target price and "buy" rating in July this year, and promptly reaffirmed this rating following the company's Q2 earnings release, highlighting its continued optimism about Cango Inc.'s long-term value.
HC Wainwright's positive outlook is based on Cango Inc.'s robust financial performance, aggressive expansion into renewable energy sectors, and its asset-light operating model. In the second quarter of 2025, Cango Inc. achieved total revenue of 1 billion yuan, with Bitcoin mining business revenue reaching 9.89 billion yuan, accounting for over 98% of total revenue. This marks the company's successful complete transition from traditional business models to a new development phase centered on cryptocurrency mining. Currently, Cango Inc. ranks as the second-largest mining company globally by computing power.
HC Wainwright noted in its report that Cango Inc. indeed faced significant challenges in Q2 2025, including a net loss of 2.1 billion yuan due to one-time provisions. However, as evident from Cango Inc.'s recently released Q2 financial results, the net loss primarily stemmed from two one-time accounting adjustments rather than substantial operational losses. While these adjustments temporarily reduced book profits, they established a solid foundation for future business expansion.
The report further emphasized the company's operational resilience. Excluding these provision items, Cango Inc.'s adjusted EBITDA reached 710.1 million yuan, reflecting the strong cash flow generation capacity and operational efficiency of its core business.
Meanwhile, HC Wainwright expressed anticipation for Cango Inc.'s strategic transformation toward renewable energy mining, including the Q2 acquisition of a 50MW mining facility in Georgia and the advancement of asset-light operations. Operationally, during July-August 2025, Cango Inc.'s mining equipment online rate improved significantly, with equipment operational efficiency reaching industry-leading levels.
The company's Bitcoin mining cost per coin is controlled at approximately $98,000, significantly below market prices, demonstrating excellent cost control capabilities. This not only enhances risk resistance during market volatility but also generates more substantial profit returns during market upturns.
HC Wainwright pointed out that Cango Inc.'s adoption of an asset-light operating model with a focus on renewable energy development aligns highly with current ESG investment trends. This model not only effectively reduces operational costs but also positions the company for more favorable financing environments in the future.
Combined with the completion of Chinese asset divestiture in May and Q2 financial data, Cango Inc. is demonstrating the flexibility and risk resistance of its business model through strategic contraction of traditional businesses and focus on high-growth sectors.
Looking ahead, Cango Inc. is steadily advancing its transformation from "single Bitcoin mining" to a comprehensive "energy + high-performance computing (HPC)" platform. In the short term, the company will strengthen its competitive foundation through three key actions: maximizing existing computing power value, deepening energy cost control, and expanding green energy storage business. Long-term plans include launching the first batch of HPC pilot projects in the first half of 2026, entering the AI computing service sector to build a second growth curve.