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Cango shares plunge after bitcoin miner reports $81.6M Q2 loss

Cango said it reduced its operating hashrate to 27.58 EH/s by phasing out older S19 rigs and moving some capacity to hosted leasing, while revenue fell about 50% quarter over quarter.

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Bitcoin miner Cango saw its shares fall more than 21% after reporting an $81.6 million net loss for the second quarter, as it continued to scale back mining operations, according to The Block.

Cango reported $50.8 million in total revenue in the quarter, down roughly 50% from the first quarter, with $47.4 million attributed to bitcoin mining. The company said the decline reflected an effort to “right-size” its fleet by phasing out older S19 mining rigs and transitioning some capacity to a hosted leasing model.

The miner cut its operating hashrate to 27.58 EH/s as of June 30, made up of 19.94 EH/s from self-mining and 7.74 EH/s from leased capacity. It mined 656 bitcoin during the quarter and ended with 1,065 BTC in reserves, worth about $82.8 million at the time cited by the outlet.

Cango also said the smaller, leaner fleet helped reduce its average cash cost per bitcoin by about 5% to around $73,313, and that it has started hedging bitcoin exposure for a volatility buffer. The company is also converting its Georgia mining site for GPU computing, targeting up to 3 MW, with related revenue expected to start rolling in during the third quarter.

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