Used car e-commerce platform Cango (NASDAQ: After completely divesting its traditional business and turning to Bitcoin mining, CGO mined a total of 954.5 Bitcoins from April to May 2025. Calculated at the current market price (about 105,000 US dollars per coin), the value exceeds 100 million US dollars, marking the initial success of its strategic transformation.
Transformation background: From used cars to a computing power arms race
Cango was once the leading used car trading platform in China, but due to industry competition and the impact of the macroeconomy, it began to gradually scale back its traditional business in 2023. In the fourth quarter of 2024, the company announced a full transformation to Bitcoin mining, sold its assets such as auto finance and trading platforms, and invested 120 million US dollars of its cash reserves in the purchase of mining machines and the deployment of computing power. This transformation coincides with the rebound of Bitcoin’s price from $68,000 to over $100,000, leading to a sharp increase in the demand for computing power.
Operational data: Double high growth in computing power and output
Computing power scale: As of the end of May 2025, Cango has deployed 82,000 Ant S19 XP mining machines, with a total computing power of 11.5 exahash /s (EH/s), ranking among the top ten publicly listed mining companies globally. Its mines are mainly located in Kazakhstan (taking advantage of local cheap electricity) and Texas, USA (with compliance advantages).
Output efficiency: 432 Bitcoins were produced in April, which rose to 522.5 in May, a 21% increase compared to the previous month. The monthly computing power utilization rate reached 97%. In the financial report, Zhang Ming, the company’s CFO, stated that thanks to the electricity price lock-up (average 0.04 US dollars per kilowatt-hour) and the optimization of mining machinery operation and maintenance, the production cost per coin was controlled within 48,000 US dollars, which was 35% lower than the industry average.
Financial impact: Balance sheet restructuring and market response
Asset structure changes: As of the end of the first quarter of 2025, the value of Bitcoin held by Cango as a proportion of its total assets jumped from 5% in 2024 to 68%, and its cash reserves dropped to 32 million US dollars. However, the floating profit of Bitcoin (calculated at cost price) reached 570 million US dollars.
Stock price performance: After the announcement of the transformation news, CGO’s stock price rose from $1.2 in October 2024 to $8.7 in June 2025, with its market capitalization exceeding $1 billion. The price-earnings ratio (PE) turned positive from negative to 12 times, reflecting the market’s recognition of its “digital asset mining” model.
Industry Insights: Opportunities and Risks of Traditional Enterprises’ Transformation
Success factors
Timing selection: Position at the low point of Bitcoin price (Q4 2024) to enjoy the price rebound dividend in 2025.
Cost control: Reduce mining costs through low-cost overseas electricity and large-scale procurement;
Compliance first: Obtain mining licenses in the United States and Kazakhstan to avoid regulatory risks.
Potential challenges
Electricity price fluctuation: The electricity price in Kazakhstan during winter may rise to 0.06 US dollars per kilowatt-hour, compressing the profit margin.
Computing power competition: The global Bitcoin computing power has reached 700 EH/s, and Cango needs to continuously invest to maintain its computing power share.
Regulatory policy: The U.S. “Digital Asset Mining Energy Transparency Act” may require the disclosure of carbon emission data, increasing compliance costs.
Future plans: Expansion of computing power and extension of ecosystem
Cango plans to invest an additional 200 million US dollars in the third quarter of 2025 to purchase next-generation mining machines (such as Bitmain S21, with a computing power of 198 TH/s and an energy efficiency ratio of 20 J/TH), increasing the total computing power to 18 EH/s, and explore the utilization of waste heat from Bitcoin mining farms (such as greenhouse cultivation) and computing power hosting services. CEO Chen Danxia said, “We are not only miners, but also aim to become a service provider of blockchain infrastructure.”
This transformation case provides a reference for traditional enterprises to enter the cryptocurrency field – by focusing on core links (such as mining), controlling costs and embracing compliance, they are expected to achieve business rebirth in the digital asset wave.
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