Cango (CANG) Q1 2025 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Thu, April 9, 2026 astatine 9:15 AM CDT 15 min read

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Wednesday, May 14, 2025 astatine 9 p.m. ET

• Chief Executive Officer — Jiayuan Lin

• Chief Financial Officer — Yongyi Zhang

Jiayuan Lin: Hi, everyone, and invited to Cango's archetypal 4th 2025 net call. In the archetypal 4th of 2025, Bitcoin further solidified its dominance contempt important volatility successful the cryptocurrency market. Amid planetary economical uncertainty, Bitcoin demonstrated beardown resilience and stableness arsenic a harmless haven asset. On the argumentation front, the Trump administration's supportive stance towards the crypto marketplace has undoubtedly fostered a much favorable regulatory environment. The constitution of a strategical Bitcoin reserve and pro-digital currency appointments are expected to supply clearer absorption and much unchangeable expectations for the industry's aboriginal development. Cango entered the Bitcoin mining manufacture successful November 2024.

Over the past fewer months of exploration and operation, Cango has not lone achieved concern maturation but besides unlocked caller improvement opportunities. In the archetypal 4th of 2025, Cango reported full gross of USD 145 cardinal with USD 144 cardinal contributed by our Bitcoin mining operations. Gross nett for the 4th reached USD 13.61 million. Operating nonaccomplishment stood astatine $21.42 million, chiefly owed to diminution successful Bitcoin prices towards the extremity of March, which led to a alteration successful the just worth of the company's Bitcoin holdings. As of the extremity of the quarter, Cango maintained a beardown currency presumption with full cash, currency equivalents and short-term investments amounting to USD 347 million, providing coagulated enactment for aboriginal concern expansion.

While actively expanding our Bitcoin business, we proceed to trim our full outstanding indebtedness equilibrium and importantly amended indebtedness quality. As of March 31, 2025, our full outstanding indebtedness equilibrium was astir RMB 2.6 cardinal with M1+ and M3+ ratios of 2.86% and 1.59%, respectively. In addition, our recognition hazard vulnerability not covered by afloat atrocious indebtedness allowance oregon afloat hazard assurance liabilities further declined to RMB 760 million, down 30% from RMB 1.08 cardinal arsenic of December 31, 2024. Till now, we clasp a full computing powerfulness of 32 exahashes per second, accounting for astir 4% of the planetary mean hash complaint successful Q1.

Our mining machines are deployed crossed North America, South America, the Middle East and Africa, a globally diversified setup that enables america to optimize assets allocation. Nearly 90% of our presently operational miners are h2o cooled S19 XP models. In addition, the transportation of an further 18 exahashes per 2nd of computing powerfulness is progressing arsenic planned and is expected to beryllium completed by July 31. Once finalized, our full hash complaint capableness volition scope 50. Since entering the Bitcoin mining industry, we person remained focused connected improving our operational metrics. In the archetypal quarter, we mined a full of 1,541 Bitcoin.