Cango Q2 Report: Mining Revenue $47.4M, Advancing Energy and AI Compute Platform Strategy

Aug. 31, 2026 — Cango Inc. (NYSE: CANG, "Cango" or the "Company"), a leading Bitcoin mining company building an integrated energy and AI computing platform with global operations, today announced its unaudited financial results for the second quarter ended June 30, 2026.

Second Quarter 2026 Financial and Operational Highlights

• Financial Performance: Despite industry-wide pressure on mining revenue, the Company continued to advance its diversification strategy through EcoHash's commercial progress and disciplined cost management. In Q2 2026, total revenue was $50.8 million, with Bitcoin mining contributing $47.4 million as the primary revenue source. Net loss for the quarter was $81.6 million, primarily due to non-cash impairment and disposal losses on mining machines. As of quarter-end, the Company held 1,056 Bitcoins as digital asset reserves, with long-term debt of $31.2 million, reflecting an improved balance sheet structure.
• Mining Operations and Costs: To reinforce disciplined cost management, the Company continued to actively optimize its mining fleet, disposing of less efficient machines and partially adopting a hosting model. As of June 30, 2026, total operating hash rate reached 27.58 EH/s, comprising 19.84 EH/s self-mining and 7.74 EH/s hosted. The Company mined 656 Bitcoins during the quarter. Thanks to fleet optimization and strict execution, average cash cost per Bitcoin decreased approximately 5% quarter-over-quarter to $73,313. The Company also began selectively executing hedging strategies to mitigate the impact of price volatility on operations.

Paul Yu, CEO of Cango, commented, "In our Bitcoin mining business, we continue to focus on unit economics rather than scale expansion. Meanwhile, our AI modular buildout at the LN site is progressing steadily. The Georgia site completed its retrofit in early July, with infrastructure now supporting up to 3 MW of capacity and room for future expansion. Racks have been delivered and installed, and GPU hardware has been procured and is arriving in batches to support phased ramp-up. Going forward, we plan to pursue two business models: bare-metal GPU hosting, leveraging our infrastructure to provide standardized deployment environments, and colocation services aimed at improving overall infrastructure utilization. Our Georgia site is onboarding customers and expects to recognize revenue in Q3. To support customers requiring proximity deployment, we have begun operating test nodes in Texas and the West Coast as part of the phased ramp-up. Looking ahead, we continue to evaluate potential new sites and the possibility of self-built facilities."

Simon Tang, CFO of Cango, stated, "This quarter we recorded a net loss of $81.6 million, primarily due to non-cash impairment and disposal losses on mining machines. During the quarter, we also initiated a Bitcoin hedging program to manage Bitcoin price volatility risk and enhance operating cash flow predictability. We strictly use hedging as a risk management tool, not for speculative purposes. The related short positions are reflected on the balance sheet and will be adjusted as we continue to execute the program rigorously."

Second Quarter 2026 Financial Results from Continuing Operations

Revenue

Total revenue for the quarter was $50.8 million, consisting of $47.4 million from Bitcoin mining and $3.4 million from other revenue. Compared to Q1 2026, total revenue decreased approximately 50%, primarily reflecting the Company's proactive reduction in operating hash rate, phasing out older, less efficient S19 series miners, and converting part of its capacity to a hosting model. While this strategic adjustment impacted revenue in the short term, it reduced operating costs and improved overall cash flow.

Operating Costs and Expenses

Total operating costs and expenses for the quarter were $131.4 million. These costs were primarily related to the Company's Bitcoin mining operations and recognition of mining machine impairment losses, and included losses from changes in fair value of crypto assets.

• Cost of revenue (excluding depreciation below) was $50.7 million, down from $99.6 million in Q1 2026, mainly due to lower electricity and hosting fees after hash rate reduction.
• Depreciation was $16.9 million, down from $29.4 million in Q1 2026.
• General and administrative expenses (including related party expenses) totaled $8.4 million.
• Mining machine impairment loss was $42.9 million.
• Mining machine disposal loss was $8.5 million.
• Loss from changes in fair value of crypto assets was $4.1 million, compared to a loss of $151.8 million in Q1 2026. The change was mainly due to stabilization and moderate recovery in Bitcoin market prices during the quarter, as well as the initial impact of the newly launched Bitcoin hedging program.

Operating Loss

Operating loss for Q2 2026 was $80.6 million, compared to an operating loss of $254.4 million in Q1 2026.

Net Loss from Continuing Operations

Net loss from continuing operations for Q2 2026 was $81.6 million, compared to a net loss of $261.1 million in Q1 2026. The net loss was primarily driven by non-cash impairment and disposal losses.

Adjusted EBITDA

Adjusted EBITDA for Q2 2026 was a loss of $10.7 million, including a $4.1 million loss from changes in fair value of crypto assets, compared to an adjusted EBITDA loss of $154.1 million in Q1 2026.

Balance Sheet

As of June 30, 2026, the Company held:

• Cash and cash equivalents of $10.1 million, compared to $7.2 million as of March 31, 2026.
• Inventory of 1,056 BTC.
• Net book value of mining machines of $58.7 million.
• Long-term debt (related party) of $31.2 million, compared to $30.6 million as of March 31, 2026.