Cango’s $700M Bitcoin Vault Overshadows $485M Market Cap as Mining Output Surges

Bitcoin miners are sitting on a secret weapon—and for Cango, it's a treasure chest that makes Wall Street's valuation look like pocket change.

The Great Disconnect

Cango's balance sheet tells a story the stock market hasn't caught up to yet. While investors price the company at $485 million, its cold storage wallets hold $700 million in Bitcoin—a staggering 44% premium to its entire market capitalization. That's not just a reserve; it's a financial statement screaming 'undervalued.'

Production Goes Vertical

Hash rate is climbing, rigs are humming, and blocks are getting solved faster. Cango's operational tempo keeps accelerating, minting fresh Bitcoin while the existing stack appreciates in the background. It's a double-engine growth strategy—produce more, hold everything, watch the gap widen.

The Institutional Blind Spot

Traditional finance still treats Bitcoin miners like industrial utilities—valuing energy consumption and hardware depreciation. They're missing the core thesis: these aren't just factories; they're accumulating digital gold reserves on behalf of shareholders. Every block reward adds to a treasury that could rival some nation-states. (Wall Street analysts, meanwhile, are busy downgrading the stock because 'volatility'—as if their 2008 CDOs were models of stability.)

The Coming Reckoning

When the market finally connects the dots—when that $700 million reserve gets priced in—the recalibration could be violent. Either the stock price surges to reflect the asset base, or someone acquires the whole operation at a fire-sale premium to market cap. Either way, that vault full of Bitcoin isn't just sitting there. It's ticking.

Cango’s stock defies mining industry struggles

Cango’s December performance stands out against a backdrop of mounting pressure on Bitcoin miners globally. 

The company maintained an average operating hashrate of 43.36 exahashes per second (EH/s) during the month, with a deployed capacity of 50 EH/s, which is around 5.4% of the total global Bitcoin network hashrate, according to the company.

“Throughout 2025, Cango delivered strong and consistent operational growth,” said Paul Yu, the company’s CEO and a director. “In December, due to favourable network difficulty adjustments, we maintained stable operating hashrate levels and achieved higher daily bitcoin production, bringing our total bitcoin holdings to 7,528.3 BTC.”

The company’s production gains come as other miners have struggled with profitability concerns. Industry data from Hashrate Index indicates that while network difficulty has stabilized, many operations are operating at or NEAR breakeven levels, raising questions about potential miner capitulation.

Cango closes in on top-10 Bitcoin treasury spot 

Cango has already surpassed GD Culture, becoming the 15th listed bitcoin reserve company. The company has adopted a “HODL” strategy, explicitly stating it does not currently intend to sell any of its Bitcoin holdings.

However, unlike heavyweights like Strategy, formerly MicroStrategy, that have embraced this strategy, Cango’s significantly smaller market capitalization creates a more pronounced valuation dynamic, with its Bitcoin holdings alone representing approximately 140% of its equity value.

The company received a vote of confidence with investors committing funds for the company. 

According to Yu, “in late December, a major shareholder decided to increase its investment in Cango with a US$10.5 million commitment, which is expected to close in January 2026, representing a powerful vote of confidence in our strategic roadmap.”

Cryptopolitan reported in December that Enduring Wealth Capital Limited (EWCL) made a $10.5 million commitment to Bitcoin miner Cango following an earlier $70 million funding deal announced in June 2025.

Yu added that the investment WOULD help Cango “drive greater bitcoin mining efficiency, and accelerate the parallel development of our energy and AI compute platform in 2026.”

Diversification beyond mining

Just like many miners who have faced the recent challenges of the mining sector and embraced diversification, Cango is pursuing a diversified strategy.

The company operates more than 40 mining sites spanning North America, the Middle East, South America and East Africa, while also developing pilot projects in integrated energy solutions and distributed artificial intelligence computing.

Cango also continues to maintain its original business line, AutoCango.com, an international used car export platform, representing an unusual hybrid corporate structure within the cryptocurrency mining sector.

For now, analysts are looking for signals that Cango can bridge the gap between its Bitcoin treasury value and market capitalization. 

However, the success of its Bitcoin mining business is indisputable, which spilled over to the stock side as it ROSE by as much as 13% yesterday, closing in on the $2 mark following the announcement.

As of mid-December, HCW analysts made a case for the CANG stock hitting $3 as while Greenridge analysts were more bullish, with a $4 target price for Cango.

AI ambitions move up on priority list 

Cango has consistently hinted at plans to become a globally distributed AI-compute network. The firm is already working towards this goal by leveraging its existing compute infrastructure and access to gigawatts of permitted, grid-connected power capacity across its global footprint.

“The nature of competition in AI has shifted from software algorithms to the scarcity of power and space,” Juliet Ye, the company’s IR Director, explained to Cryptopolitan. 

Cango is developing what it describes as an innovative, plug-and-play AI infrastructure solution designed to enable Bitcoin mining sites to transition into facilities capable of running AI inference workloads without the prohibitively expensive infrastructure upgrades that often cost tens of millions of dollars and tend to deter such conversions.

The company has already validated its solution in real-world environments, “Plans are underway to replicate this model across several mining sites within this year,” added Juliet.

Cango’s strategy addresses growing demand from the long-tail inference market for geographically distributed computing power closer to data sources. It also helps numerous small and medium-sized BTC mining sites worldwide to transition to AI without worrying about the attendant infrastructural cost.

In the near term, the company aims to unlock the full value of its 50 EH/s mining capacity while selectively entering the GPU compute leasing market, with medium-term plans to develop regional AI networks and long-term ambitions of building a globally distributed compute grid backed by multi-year compute offtake agreements.