Cango (CANG) investor relations material

Executive summary

• Total Q2 2026 revenue was $50.8 million, with $47.4 million from Bitcoin mining and $3.4 million from other sources.

• Net loss was $81.6 million, mainly due to $42.9 million in non-cash impairment and $8.5 million in disposal losses on mining machines as part of asset restructuring.

• Strategic shift included deliberate mining scale-back, transition to leasing, and focus on operational efficiency.

• AI infrastructure buildout completed at the Georgia site post-Q2, with 3 MW modular capacity, first customer contract signed, and customer onboarding underway.

• Bitcoin hedging program launched to manage price volatility and enhance cash flow predictability.

Financial highlights

• Revenue declined by 50% sequentially from Q1 2026, reflecting reduced operational hash rate and transition to leasing.

• Adjusted EBITDA loss was $10.7 million, a significant improvement from Q1.

• Cost of revenue was $67.6 million, with $50.7 million excluding depreciation.

• Depreciation expense was $16.9 million, down from $29.4 million in Q1.

• Cash and cash equivalents stood at $10.1 million as of June 30, 2026, up from $7.2 million at March 31.

Outlook and guidance

• AI infrastructure revenue expected to begin in Q3 2026, with initial contributions modest but validating the business model.

• Mining hash rate expected to remain stable in Q3, with possible minor impact from summer power curtailments.

• Continued focus on optimizing the mix between self-mining and leasing, and on capital discipline.

• Ongoing customer onboarding and site expansion planned, leveraging experience from Georgia.

• Evaluation of new sites and potential self-build facilities for future expansion.