Cango, a Bitcoin mining company listed on the NYSE, reports a net loss of $81.6 million in Q2 2026
Cango, a Bitcoin mining company listed on the NYSE, reported a net loss of $81.6 million for Q2 2026, with total revenue of $50.8 million, approximately halved compared to Q1. Mining revenue was $47.4 million and other revenue was $3.4 million.
The losses were primarily due to a non-cash impairment of mining machines amounting to $42.9 million and a disposal loss of $8.5 million. Operating losses were $80.6 million, and adjusted EBITDA losses were $10.7 million, both narrowing compared to Q1's net loss of $261.1 million and adjusted EBITDA loss of $154.1 million. As of June 30, cash stood at $10.1 million, long-term related party debt at $31.2 million, and net value of mining machines at $58.7 million.
The company is phasing out inefficient S19 machines and partially transitioning to managed leasing. At the end of the period, operational hash rate was 27.58 EH/s, with self-mining at 19.84 EH/s and leasing at 7.74 EH/s; the quarter's output was 656 Bitcoins, with a cash cost per coin of approximately $73,313, a decrease of about 5% quarter-over-quarter, and a full cost including depreciation of $98,405. Officially disclosed digital asset reserves were 1,056 coins; some media estimate about 1,065 coins, valued at approximately $82.8 million. Total assets decreased from about $1.133 billion at the end of 2025 to approximately $294 million.
CFO Simon Tang stated that Bitcoin hedging has been initiated, with short positions recorded on the balance sheet to manage price volatility rather than for speculation. CEO Paul Yu mentioned that mining is shifting towards unit economics rather than scaling up. The Georgia LN mining site completed modular upgrades in early July, with a maximum capacity of 3 megawatts, cabinets installed, and GPUs arriving in batches. The first AI customer contract has been signed, with expected revenue recognition in Q3, and preparations are underway for bare metal and cabinet hosting lines, with testing nodes set up in Texas and the West Coast.
After the financial report, the stock price briefly fell over 20%, trading at about $1.89. The company, originally a Chinese automotive service provider, has since transformed into mining and established EcoHash to promote energy and AI computing power platforms.
In market mechanics, sellers are actively reducing hash power, impairing and selling old mining machines, while buyers continue to accept their output at spot prices and trade their stocks. The driving force is reduction and balance sheet contraction, not increased production. Capital flows from equity value to confirmed losses on equipment, with limited cash and Bitcoin remaining on the balance sheet, hedging some price risk into derivatives. Beneficiaries are higher efficiency machine positions and incoming GPU tenants, while pressured parties include shareholders who purchased based on old hash rate valuations, and self-mined output with cash costs still close to or above spot prices.
Source: Public Information
ABAB AI Insight
Cango has shifted from automotive trading services to Bitcoin mining, and under the pressure of halved electricity costs and machine age, it is converting its mining sites into GPU cabinets, following the standard second act of North American listed mining companies: first expanding hash rate, then impairing, leasing, and adjusting hash power when coin prices fall below cash costs. The phasing out of S19 machines indicates that the lifespan of assets from the previous expansion cycle is shorter than the financing cycle. EcoHash and the Georgia 3 MW pilot aim to sell existing power to inference customers rather than ordering another batch of mining machines. The hedging program acknowledges that reserves are no longer treated as inventory that only appreciates.
The capital path is to shrink the balance sheet for survival. Total assets have been cut by about three-quarters, long-term debt reduced from hundreds of millions to $31.2 million, net value of mining machines remaining at $58.7 million, and cash down to $10.1 million, relying on 1,056 coins and upcoming hosting fees for survival. The motivation is that with cash costs dropping to $73,313, it becomes feasible to breathe near spot prices; the strategy is to change electricity from "serving only one algorithm" to "whoever can pay for electricity can use it." The first AI contract shifts the narrative from miners to computing power landlords, but Q3 revenue has yet to be recognized.
Comparable companies include Core Scientific, Hut 8, and Iris Energy, which have converted mining sheds into data centers, as well as Marathon and Riot in their choices regarding the disposal of old machines and reserve strategies. Cango is in a transitional phase after contraction: the digital hash power is shrinking, the story is shifting to an energy platform, and the stock is reflecting impairments first.
This is a technological substitution. The substitute is the monopoly of dedicated ASICs over electricity. The mechanism is that Bitcoin difficulty and coin prices determine the upper limit of mining rents, while GPU inference provides another rental curve; when cash costs approach coin prices, electricity flows to loads with higher bids. Hedging cuts off the path of "holding more coins to survive," forcing the company to rely on the difference in electricity costs and hosting contracts for survival, rather than on the fantasy of coin prices on the balance sheet.
ABAB News · Law of Cognition
- Hash power contraction often precedes a change in narrative.
- Electricity follows whoever pays, and machines follow electricity.
- When cash costs approach coin prices, hedging replaces belief.