Dallas – September 04, 2026 -- Cango Inc. (NYSE: CANG) reported a net loss of US$81.6 million for the second quarter of 2026, driven primarily by non-cash impairment and disposal charges on its Bitcoin mining fleet, as the company accelerates a pivot toward AI compute infrastructure.
Revenue halves as company right-sizes mining fleet
Total revenue fell approximately 50% sequentially to US$50.8 million, with US$47.4 million derived from Bitcoin mining and US$3.4 million from other sources. The decline stemmed from Cango's decision to phase out older S19-series mining machines and shift some capacity to a hosted leasing model, a move management said improved operating costs and cash flow despite the top-line hit.
Impairment and fair-value swings drive quarterly loss
Operating costs and expenses totaled US$131.4 million, including a US$42.9 million impairment loss on mining machines and an US$8.5 million loss on machine disposals. Loss from changes in fair value of crypto assets narrowed sharply to US$4.1 million, down from a US$151.8 million loss in the first quarter, which the company attributed to Bitcoin price stabilization and its newly launched hedging program. Adjusted EBITDA loss narrowed to US$10.7 million from US$154.1 million in Q1 2026.
Mining cost per Bitcoin drops 5% on fleet optimization
Total operating hashrate stood at 27.58 EH/s as of June 30, comprising 19.84 EH/s of self-mining capacity and 7.74 EH/s of leased capacity. The company mined 656 Bitcoins during the quarter, while average cash cost per Bitcoin fell approximately 5% sequentially to US$73,313. Cango held 1,056 Bitcoins in treasury as digital asset reserves at quarter-end, alongside long-term related-party debt of US$31.2 million, up slightly from US$30.6 million at the end of Q1.
Georgia site completes AI conversion, targets Q3 revenue
CEO Paul Yu said the company's Georgia mining site completed conversion to AI infrastructure in early July, now capable of supporting up to 3 megawatts with room for expansion. Container units have been installed and GPU hardware is arriving in staged batches. Cango plans to pursue two business models at the site: bare-metal GPU hosting and colocation services, with customer onboarding underway and revenue expected in the third quarter. The company has also begun operating test nodes in Texas and on the West Coast to support proximity-based deployment demand.
Balance sheet shrinks as cash position tightens
Total assets fell to US$294.4 million as of June 30, 2026, from US$1.13 billion at the end of 2025, reflecting the steep decline in mining machine net value to US$58.7 million from US$248.7 million. Cash and cash equivalents rose to US$10.1 million from US$7.2 million at the end of the first quarter. CFO Simon Tang said the company's hedging program is intended strictly for risk management rather than speculation, with related short-term positions reflected on the balance sheet.