Detailed narrative
Q1 2026 results dominated by non-cash Bitcoin-price charges
Total revenue was $102M, of which $98.4M came from Bitcoin mining, down ~43% QoQ as management proactively reduced operational hash rate. The quarter produced a $254.4M operating loss and a $261.1M net loss from continuing operations, driven overwhelmingly by non-cash items tied to Bitcoin's price decline: a $151.8M loss from the change in fair value of the Bitcoin collateral receivable (vs $171.4M in Q4), a $49M mining-machine impairment, and a $20.3M loss on disposal of mining machines.
Non-GAAP adjusted EBITDA was a $154.1M loss, of which $151.8M was the collateral fair-value hit. The company started the quarter holding over 7,500 Bitcoin.
Mining cost optimization and fleet upgrade
Average cash cost per Bitcoin mined was $76,928 (ex-depreciation), a 9% decline from Q4 2025, with an all-in cost of $99,747. Cost reduction was driven by phasing📎 out higher-consumption S19 miners in favor of energy-efficient S21 models, migrating hash rate to lower-power-cost regions (Paraguay, Oman), and adopting revenue-sharing arrangements at certain higher-cost sites.
The fleet upgrade began in March; by end of May the self-mining S19:S21 mix was approximately 8:2. April self-mining output was 230.04 Bitcoin at a further-reduced cash cost per coin.
Hash rate transition and revenue-sharing leasing model
Operational hash rate was 37.01 EH/s at March 31 (27.98 EH/s self-mining, 9.02 EH/s hosted). By April 30 it stood at 31.58 EH/s (20.43 EH/s self-mining, 11.15 EH/s hosted) across 26 active sites globally. Management is not setting a hard hash rate target, focusing instead on margin and cash-flow KPIs, so hash rate may fluctuate in the short term.
Under the temporary revenue-sharing/leasing model at higher-cost sites, the site owner bears power, maintenance and operating costs and shares mining revenue with Cango at agreed ratios — ensuring the company does not mine at a loss. This introduces depreciation expense but reduces direct site-level operating exposure; leased hash rate is currently deployed mainly in parts of the Americas.
Bitcoin treasury strategy shift and deleveraging
Cango sold 2,000 Bitcoin in Q1, shifting from a 'mine and hold' to a more dynamic, liquidity-focused treasury approach. Proceeds were used to repay Bitcoin-backed/related-party loans, cutting long-term debt to $30.6M from $557.6M at year-end and reducing the receivable for Bitcoin collaterals to $68.2M.
Bitcoin holdings were 1,025.7 at March 31 and 1,057.46 as of April 20. Cash and cash equivalents fell to $7.2M from $41.2M at year-end, mainly on debt repayment and operations, with cryptocurrencies of $7.9M and mining machines carried at $130.8M net.
EcoHash AI infrastructure pilot
EcoHash aims to leverage Cango's power access and mining expertise into standardized AI compute solutions, beginning with GPU compute capacity leasing and, longer term, an AI compute network via the Ecolink management platform. The Georgia/LN site — the company's only fully self-owned infrastructure asset, with 50 MW of grid-connected capacity and a power contract through 2029 — is nearing completion of retrofitting; orders have been placed for standardized compute containers (air-cooled, liquid-cooled and hybrid) arriving in phases, to serve as a production-environment showroom and proof-of-concept.
CapEx is being deployed prudently in phases using the company's own capital for validation, with the bulk going to server purchases; future funding may use GPU-backed financing, financial leases, or strategic partnerships. Revenue is expected to begin in H2 2026 with no target set.
Strategic investments and partnerships
In Q1, Cango's Chairman and a Board Director invested $65M in the company through entities they control. The company also established a strategic collaboration with DL Group, a Hong Kong-listed company, comprising a $10M convertible note and a strategic operation MoU that complements its AI infrastructure ambitions. Management frames these as supporting capital structure and the EcoHash build-out.