Cango has begun selling part of its bitcoin reserves as it restructures its business and pivots toward artificial intelligence infrastructure. The company disclosed that it sold 4,451 BTC in February 2026, using the proceeds to reduce debt and free up capital for new investments. The move signals a shift away from a bitcoin accumulation strategy toward a more flexible treasury approach as the firm adapts to changing market conditions.
The decision comes as Cango reported full-year 2025 revenue of $688.1 million but posted a net loss of $452.8 million. Despite generating strong revenue from its mining operations, profitability was heavily impacted by rising costs and accounting adjustments. The company said high production expenses, impairment charges on mining equipment, and fair value losses contributed to the significant decline in earnings.
Cango significantly expanded its bitcoin mining operations during 2025, producing approximately 6,594 BTC over the year. Mining-related activities accounted for about $675.5 million of its total revenue. However, the cost of producing bitcoin rose sharply, with the company estimating an all-in production cost of around $97,000 per coin. These elevated costs reduced margins and placed pressure on the company’s financial performance.
The sale of bitcoin marks a strategic shift in how the company manages its digital asset holdings. Instead of continuing to accumulate bitcoin as a long-term reserve asset, Cango is now treating its holdings as a source of liquidity. Company executives said the sale was intended to strengthen the balance sheet by lowering financial leverage while enabling investment in new growth areas.
Cango’s leadership has identified artificial intelligence infrastructure as a key focus for future expansion. Chief Executive Officer Paul Yu said the company is advancing its transformation into an AI infrastructure provider, with plans to develop its EcoHash platform. The platform is designed to deliver computing resources for AI applications, particularly in the area of inference, which involves running trained machine learning models.
Chief Financial Officer Michael Zhang noted that recent losses were largely driven by transformation-related costs rather than ongoing operational issues. He emphasized that the company is actively working to secure capital and optimize its financial structure to support its transition into the AI sector.
The shift from bitcoin mining to AI infrastructure reflects a broader trend within the industry. As mining profitability becomes more challenging due to rising energy costs and increasing network competition, some companies are exploring alternative uses for their computing resources. The growing demand for high-performance computing in artificial intelligence has created new opportunities for firms with large-scale infrastructure.
Cango’s move highlights how digital asset companies are adapting to evolving market dynamics. By monetizing its bitcoin holdings and reallocating capital toward AI, the company aims to position itself in a sector that is currently experiencing strong demand and investment growth.
The market reaction has been cautious, with Cango’s shares trading around $0.68 and declining more than 40 percent over the past three months. Investors are now watching closely to see whether the company’s transition into AI infrastructure can improve its financial performance and support long-term growth.
