Cango Inc. Reports Q1 2025 Bitcoin Mining Revenue Meets Apollo Insights' Expectations, Firm Highlights Solid Operational Metrics and Growth Potential

Rhea-AI Summary

Cango Inc. (NYSE: CANG) reported Q1 2025 Bitcoin mining revenue of RMB 1,046 million, aligning with Apollo Insights' expectations. The company achieved a deployed hash rate of 32 EH/s by Q1 end, with industry-leading productivity of 16.6 Bitcoin mined per EH/s in March 2025. During Q1, Cango mined 1,541 Bitcoins and held 2,475 Bitcoins as of March 31, 2025.

Apollo Insights projects Cango's hash rate to reach 42 EH/s by end-2025 and 54 EH/s by end-2026, including a planned 18 EH/s acquisition by July 2025. Despite Q1 adjusted EBITDA losses due to Bitcoin price volatility and legacy auto business expenses, Apollo raised its 2025 revenue forecast to RMB 5,173 million.

Positive

• Industry-leading productivity of 16.6 Bitcoin mined per EH/s in March 2025
• Significant hash rate expansion planned: from 32 EH/s to 42 EH/s by end-2025 and 54 EH/s by end-2026
• Strong Bitcoin holdings of 2,475 BTC with no sales during Q1
• Apollo Insights increased full-year 2025 revenue estimate to RMB 5,173 million

Negative

• Q1 2025 adjusted EBITDA loss reported
• Negative impact from Bitcoin price volatility
• Ongoing expenses from legacy auto business affecting profitability

Insights

Cryptocurrency Mining Analyst

Cango's Bitcoin mining revenue met expectations with strong operational metrics despite EBITDA loss; substantial hash rate growth projected through 2026.

Cango's Q1 2025 Bitcoin mining revenue of RMB 1,046 million aligned with Apollo Insights' projections, demonstrating the company's execution reliability in a volatile sector. While posting an adjusted EBITDA loss, this reflects temporary headwinds rather than operational deficiencies – the dual pressure of Bitcoin price volatility and legacy auto business expenses remain transitional factors as the company pivots fully to mining operations.

The operational metrics reveal a particularly impressive foundation: 32 EH/s deployed hash rate positions Cango as a significant mining player, while their March productivity of 16.6 Bitcoin per EH/s represents industry-leading efficiency. The 1,541 Bitcoins mined in Q1 and 2,475 Bitcoin treasury holding (with zero selling) indicates both operational excellence and a strategic "HODL" approach that preserves upside exposure to potential Bitcoin appreciation.

Apollo's projected hash rate expansion to 42 EH/s by end-2025 and 54 EH/s by end-2026 would represent 31% and 69% growth from current levels respectively. The pending 18 EH/s acquisition (expected by July) will be transformative, potentially positioning Cango among the top-tier global miners. This accelerated scaling creates a powerful operating leverage opportunity – as fixed costs spread across growing operations, profitability inflection becomes increasingly likely.

The diversification strategy into favorable mining contracts, self-operation models, and clean energy investments demonstrates management's recognition that competitive advantage in mining increasingly depends on securing low-cost electricity in politically stable regions. Their "asset light" approach to the legacy auto platform signals proper resource allocation prioritization toward their higher-margin mining operations.

SHANGHAI, May 19, 2025 /PRNewswire/ -- Cango Inc. (NYSE: CANG) ("Cango" or the "Company"), a rapidly expanding leader in Bitcoin mining, today announced the release of Apollo Insights' first quarter review of the Company's performance, which highlighted that Cango's Q1 2025 Bitcoin mining revenue was in line with their expectations and noted the Company's solid operational metrics and potential for future growth.

The Apollo Insights review, titled "Q1 BTC Mining Revenue In-Line, Deployed Hash Rate Poised For Growth," reported Cango's Q1 2025 Bitcoin mining revenue at RMB 1,046 million, in line with the firm's estimates. While the report noted a Q1 2025 adjusted EBITDA loss, attributed primarily to Bitcoin price volatility and expenses from the legacy auto business, Apollo Insights maintained a positive outlook for future profitability driven by operating leverage in the Bitcoin mining segment. The firm increased its full-year 2025 revenue estimate to RMB 5,173 million, reflecting higher Bitcoin price assumptions partially offset by increased network difficulty.

The review highlighted Cango's solid operational performance in Q1 2025, with deployed hash rate reaching 32 EH/s by quarter-end. In March 2025, Cango achieved industry-leading productivity of 16.6 Bitcoin mined per EH/s. The Company mined a total of 1,541 Bitcoins in the quarter and held 2,475 Bitcoins as of March 31, 2025, with no Bitcoins sold.

Apollo Insights estimates significant hash rate growth ahead, projecting Cango to exit fiscal 2025E and fiscal 2026E with deployed hash rates of 42 EH/s (+10 EH/s year-over-year) and 54 EH/s (+12 EH/s year-over-year), respectively. This growth trajectory includes the planned acquisition of 18 EH/s expected to be completed by the end of July 2025.

Looking ahead, as a future-ready company with strong operational flexibility, the report outlines that Cango will strive to secure more favorable mining contracts, explore self-operation of its fleet of mining equipment, consider investing in low-cost, clean energy projects in the Middle East and Australia, offer various digital financial services, and develop the "asset light" used car platform. 

About Cango Inc.

Cango Inc. (NYSE: CANG) primarily operates a leading Bitcoin mining business. Cango has deployed its mining operation across strategic locations including North America, Middle East, South America, and East Africa. Cango expanded into the crypto assets market in November 2024, driven by the development in blockchain technology, increasing prevalence of crypto assets and its endeavor to diversify its business. Meanwhile, Cango has continued to operate the automotive transaction service in China since 2010, aiming to make car purchases simple and enjoyable. For more information, please visit: www.cangoonline.com.

Media Contact

Juliet Ye
Cango Inc.
Tel: +86 21 3183 5088 ext.5581
Email: ir@cangoonline.com 

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SOURCE Cango Inc.

FAQ

What was Cango's (CANG) Bitcoin mining revenue in Q1 2025?

Cango reported Bitcoin mining revenue of RMB 1,046 million in Q1 2025, which was in line with Apollo Insights' expectations.

How many Bitcoins did CANG mine in Q1 2025?

Cango mined 1,541 Bitcoins during Q1 2025 and held 2,475 Bitcoins as of March 31, 2025.

What is Cango's projected hash rate growth for 2025-2026?

Apollo Insights projects Cango's hash rate to grow from 32 EH/s to 42 EH/s by end-2025 and 54 EH/s by end-2026, including an 18 EH/s acquisition planned for July 2025.

What caused Cango's Q1 2025 EBITDA loss?

The adjusted EBITDA loss was primarily attributed to Bitcoin price volatility and expenses from the company's legacy auto business.

What is Cango's mining productivity rate?

Cango achieved an industry-leading productivity rate of 16.6 Bitcoin mined per EH/s in March 2025.