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Key Takeaways
- Cango Inc. has expanded its operations into crypto mining amid changing trends in the digital finance landscape.
- The company’s May 2025 update reveals a major shift toward AI-powered energy optimization for its mining operations.
- Cango Inc. is focusing on mining Bitcoin and select altcoins like Kaspa (KAS) and Ethereum Classic (ETC) using environmentally efficient techniques.
- The company has entered new partnerships to secure low-cost energy resources across rural China and Central Asia.
- Cango is prioritizing regulatory compliance as Chinese crypto policies remain uncertain but evolving.
- Mining revenues have shown signs of stabilization after Q1 volatility, largely due to rising Bitcoin prices and strategic reinvestment.
- Cango’s pivot to crypto is part of a larger plan to diversify beyond its traditional auto-financing model.
Introduction to Cango Inc.’s Crypto Journey
Cango Inc., once primarily recognized as a Chinese automotive financial technology platform, has been undergoing a quiet but calculated transformation since early 2024. With a declining user base in auto financing and a volatile Chinese tech sector, Cango began pivoting toward blockchain-based revenue opportunities. In May 2025, the company publicly released an update on its growing crypto mining operations, signaling a full-fledged commitment to entering the blockchain economy. This move has raised eyebrows and sparked investor interest as Cango joins the list of legacy fintech firms experimenting with digital asset mining.
Focus on Bitcoin and Altcoin Mining
Cango’s update outlines a clear strategy: prioritizing energy-efficient mining of Bitcoin and two key altcoins—Kaspa (KAS) and Ethereum Classic (ETC). While Bitcoin remains the gold standard for crypto mining investments, Kaspa and ETC offer technical advantages in terms of lower entry costs and mining difficulty. Kaspa’s blockDAG structure allows for faster confirmations and higher block rates, and Cango has allocated 20% of its mining hardware toward this rapidly growing ecosystem.
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Ethereum Classic, on the other hand, presents a stable opportunity with existing infrastructure compatibility post-Ethereum’s move to Proof of Stake. By diversifying their mining focus, Cango aims to insulate itself from Bitcoin’s occasional volatility while still capitalizing on its dominance.
Energy Partnerships and Mining Efficiency
The May 2025 report emphasized that the core of Cango’s crypto mining success lies in securing cost-effective energy sources. Cango has signed two new energy contracts with hydropower providers in rural Sichuan and a wind-energy collective in Kazakhstan. These agreements allow Cango to mine at a competitive cost—estimated at $0.035 per kilowatt-hour—well below the industry average.
Furthermore, Cango has introduced a proprietary AI system designed to monitor and dynamically reallocate power loads to maximize operational uptime. This shift to smart mining management is expected to improve efficiency by 12–15% over the next two quarters.
Regulatory Positioning and Chinese Policy Landscape
Crypto mining remains a gray area in mainland China, although enforcement has eased in specific provinces due to local governments seeking new revenue sources. Cango’s report highlighted ongoing negotiations with provincial authorities in Yunnan and Guizhou, where it intends to expand operations. While national policy hasn’t explicitly reversed the 2021 mining ban, regional implementation varies widely.
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Cango is reportedly working closely with legal advisors to ensure regulatory compliance by structuring its mining subsidiaries in a manner similar to state-owned energy affiliates. This strategy not only shields the parent company from legal complications but also enables them to negotiate favorable tax structures.
Revenue Trends and Financial Outlook
Financially, the May update presents a cautiously optimistic outlook. In Q1 2025, Cango earned approximately 68 million RMB (around $9.4 million USD) from mining, with Bitcoin contributing roughly 70% of the revenue. Despite a turbulent start to the year, partly due to unseasonal energy shortages in Sichuan and a global GPU shortage, the company has stabilized its hardware infrastructure and expects mining output to increase by 18% by Q3.
Interestingly, Cango has opted not to liquidate all its mined coins immediately; instead, it’s holding approximately 300 BTC in cold storage, positioning itself for long-term appreciation. This strategic reserve policy is aligned with similar practices by North American mining giants.
Technology Upgrades and Green Transition
One standout component of the May 2025 update was Cango’s transition toward “greener” mining practices. In addition to energy partnerships, the company is replacing older ASICs with newer, energy-efficient models such as the Antminer S21 Hydros and Kaspa-optimized KS3s. The integration of AI to dynamically switch mining algorithms based on market profitability is also underway.
Cango’s CTO, Wei Zhang, explained that real-time data from multiple pools—including ViaBTC and F2Pool—will feed into a central dashboard allowing the AI to automatically switch between BTC, KAS, and ETC mining within milliseconds.
This technological agility represents a next-generation approach to crypto mining and indicates the company’s ambition to compete on a global scale.
Diversification and Strategic Positioning
Cango’s push into crypto isn’t occurring in a vacuum—it’s part of a larger diversification effort. With China’s automobile sales growth plateauing and Cango’s core fintech offerings experiencing reduced demand, mining represents a high-risk, high-reward path forward. Additionally, the company is exploring the possibility of tokenizing some of its fintech services through a Cango-backed digital token, although the report indicates this is still in the ideation stage.
Analysts suggest that if Cango can successfully merge its traditional tech-finance capabilities with blockchain-based assets, it could carve out a unique hybrid business model.
Risks and Volatility Remain
Despite the positive developments, the update does not shy away from the risks. Regulatory unpredictability, hardware obsolescence, token price volatility, and geopolitical tensions with Central Asian energy partners are all flagged as material risks. Moreover, there’s concern from shareholders about whether the company’s crypto ambitions will divert focus from its core fintech responsibilities.
However, Cango’s leadership appears committed to maintaining a balanced approach, with separate operating divisions now managing the mining and fintech portfolios independently.
Conclusion
Cango Inc.’s May 2025 crypto mining update marks a bold turning point for the once fintech-focused enterprise. By embracing blockchain infrastructure and investing heavily in energy optimization, AI-powered mining, and strategic altcoin positioning, Cango is charting a new course amid economic and technological uncertainty. While regulatory risks remain a pressing concern, the company’s pragmatic and calculated approach—especially its energy deals and tech upgrades—has garnered cautious approval from industry watchers.
Whether Cango becomes a major player in the crypto mining space or serves as a cautionary tale of diversification gone awry will depend on its execution over the next 12–18 months. For now, the company has managed to blend innovation with resourcefulness—qualities that could serve it well as it navigates the volatile but opportunity-rich world of cryptocurrency.