Cango’s second-quarter 2026 earnings report shows a company in transition. Revenue dropped by roughly half from the prior quarter, and the net loss reached $81.6 million. But the numbers only tell part of the story. A lot of the loss came from accounting charges for older mining hardware, not from the everyday cost of running machines.
Total revenue was $50.8 million. Bitcoin mining brought in $47.4 million of that. The rest came from other sources. Management says the revenue slide was intentional. Cango reduced its operating hashrate, retired less efficient S19 machines, and moved part of its fleet into hosting agreements. That hurt the top line, but it also lowered operating costs and helped cash flow.
CFO Simon Tang called the loss mainly a reflection of non-cash impairment and disposal losses on mining machines. Impairment charges were $42.9 million, and disposal losses added another $8.5 million. The loss from operations came to $80.6 million. Adjusted EBITDA, a measure that strips out certain items, was a $10.7 million loss. That was still a better result than the first quarter, which suggests the underlying operation has improved even if the reported bottom line looks rough.
Smaller Mining Fleet, Better Unit Economics
By the end of June, Cango’s operating hashrate stood at 27.58 EH/s. That includes 19.84 EH/s of self-mining capacity and 7.74 EH/s under lease. The company mined 656 bitcoins during the quarter and ended it holding 1,056 bitcoins. Average cash cost per bitcoin fell about 5% from the previous quarter to $73,313. That matters because mining economics are often judged by cost per coin as much as total hashrate.
Hedging Could Calm Quarterly Swings
The bigger strategic news is a new bitcoin hedging program. Cango wants to reduce its exposure to sudden moves in bitcoin prices. The company says the program is for risk management only, not speculation. If discipline holds, hedging should make cash flow more predictable. That could also make the stock less sensitive to the daily spot price of bitcoin.
AI Infrastructure Moves Ahead
Cango is also pushing into AI compute hosting. Its Georgia site completed conversion in early July and can support up to 3 megawatts, with room to grow. GPU hardware is arriving in stages, and customer revenue is expected in the third quarter. The company will offer bare-metal hosting and colocation services. It has also launched test nodes in Texas and on the West Coast, which suggests it wants to be close to customers who need lower-latency access.
The balance sheet reflects the same leaner approach. Cash rose to $10.1 million from $7.2 million in the prior quarter. The company also holds 1,056 bitcoins on its books. Mining equipment net value dropped to $58.7 million after the write-downs. Debt stayed relatively flat at $31.2 million. Total liabilities and total assets both shrank compared with the end of 2025, so the restructuring appears to be taking hold, at least on paper.
