Cango Pivots to AI Infrastructure, Slashes Bitcoin Production Costs

Cango, the world's sixth-largest Bitcoin miner by hashrate, has announced a significant reduction in operational costs as it pivots its business model toward AI and energy infrastructure. According to its latest operational report, the company slashed its Bitcoin production cost to $68,215 per coin, representing a 19.3% decrease from the $84,552 average cash cost recorded in the fourth quarter of 2025. This transition to a "lean-production model" is designed to prioritize margin resilience over raw scale, allowing the company to better weather the volatility of Bitcoin prices. As part of this financial restructuring, Cango liquidated 2,000 BTC in March at an average price between $68,000 and $69,000, netting approximately $137 million. The proceeds from the sale were utilized to reduce outstanding Bitcoin-backed loans. As of March 31, Cango reported $30.6 million in remaining Bitcoin-backed loans and a treasury holding of 1,025.69 BTC. This move toward deleveraging is mirrored by other industry peers, such as MARA Holdings, which recently sold Bitcoin to repurchase convertible debt. To fund its transition into AI and energy infrastructure, Cango secured a $65 million equity investment from its leadership team and a $10 million convertible bond from DL Holdings. Operationally, the company maintains a total hashrate of 37.01 EH/s, with 27.9 EH/s in self-mining and 9.02 EH/s via leasing. Despite a 3.44% rise in pre-market trading following the announcement, Cango's stock has faced significant headwinds, falling approximately 72% year-to-date.