Against the backdrop of continuous evolution in the global digital currency market and accelerated restructuring of computing power competition, Cango Inc. (CANG.US) announced its second quarter 2025 financial results on September 5th, declaring its new journey as a leading global Bitcoin mining enterprise with robust performance data. During the period, Cango Inc. achieved revenue of 1 billion RMB, with Bitcoin mining business revenue reaching 9.89 billion RMB, accounting for over 98% of total revenue. This data clearly demonstrates that the company has successfully completed a comprehensive transformation from traditional business models to a new development phase centered on cryptocurrency mining as its core driver. Currently, Cango Inc. has become one of the world's second-largest mining companies by hash rate.

From a profitability perspective, although the company recorded a net loss at the accounting level due to one-time adjustment factors, the Adjusted EBITDA, which better reflects the health of core business operations, showed excellent performance with 710 million RMB in profits this quarter. As widely recognized, Adjusted EBITDA eliminates interference from non-cash and non-operational accounting factors, truly reflecting the enterprise's core business cash flow generation capability and operational efficiency. Cango Inc.'s strong performance in this metric indicates that its Bitcoin mining business not only leads in scale but also possesses excellent profitability quality and sustainability.

In summary, this performance report is not only Cango Inc.'s first complete quarterly report after completing its strategic transformation, but also powerful proof that it has steadily joined the ranks of global top-tier Bitcoin mining companies. The leap from zero hash rate to 50 EH/s in just nine months demonstrates remarkable strategic execution and growth resilience, firmly establishing its position among world-class mining companies.

**Strategic Transformation Achieves Global Leadership with Core Financial Indicators Validating Exceptional Profitability Resilience**

According to analysis, the net loss in Cango Inc.'s quarterly report mainly stems from two strategic, one-time accounting adjustments. While these adjustments temporarily affect book profits in the short term, they represent proactive strategic positioning for long-term development, injecting new momentum for long-term value growth.

First, the 18E mining machines generated book losses due to fair value revaluation following stock price increases, which precisely demonstrates the company's significant market value enhancement and investment value growth. This transaction introduced advanced mining equipment for the company, directly improving future mining efficiency and revenue capability.

Second, the disposal of Chinese assets resulted in a one-time impairment of $82.58 million following third-party evaluation, representing the company's strategic choice to focus on Bitcoin mining as its core business and optimize global asset allocation. Although the evaluation generated a one-time book adjustment, it brought abundant cash flow to the company, providing greater flexibility for subsequent strategic investments and business expansion.

These strategic initiatives and forward-looking positioning enable Cango Inc. to gain significant advantages in four areas: enhanced asset liquidity and allocation efficiency; optimized global business layout with more focused resource allocation on core business; sufficient momentum reserves for future performance growth; and improved flexibility and adaptability to market changes. These investments will gradually release benefits over the coming quarters, bringing sustained growth momentum and competitive advantages to the company.

Cango Inc.'s development speed is remarkable, particularly with key operational indicators reaching industry-leading levels. During July-August 2025, the company's mining machine online rate significantly improved, with equipment operational efficiency reaching new heights. High online rates not only directly enhance mining output but also reflect the company's deep accumulation in mining facility operations, equipment management, and technical optimization.

More impressively, Cango Inc. controlled single Bitcoin mining costs to approximately 98,000 RMB, significantly below market prices. Excellent cost control brings dual advantages to Cango Inc.: enhanced risk resistance during market volatility and higher profit returns during market upturns. This represents not only operational achievement but also an important manifestation of the company's core competitiveness.

Additionally, in the second quarter of this year, Cango Inc. made another strategic move by successfully acquiring a 50-megawatt mining facility in the United States. This strategic initiative establishes a solid foundation for the company's future hash rate expansion. This acquisition not only directly enhances the company's hash rate scale but also demonstrates the company's strategic vision for global positioning.

Behind clear strategic planning lies strong cash flow support. As of June 30, 2025, Cango Inc. held cash and cash equivalents of $118 million, with abundant funding reserves providing solid guarantees for the company's future development.

Through strategic positioning and excellent operations, Cango Inc. has not only rapidly joined the ranks of global top-tier mining companies but also demonstrated sustained profitability resilience and high growth potential through leading cost control capabilities, abundant cash reserves, and forward-looking global expansion. The company has completed high-quality transformation, establishing a solid foundation for future growth.

**From Mining Fields to Computing Centers: Evolution Toward "Energy + HPC" Comprehensive Platform**

Cango Inc. is steadily advancing its transformation from "single Bitcoin mining" to a comprehensive "Energy + High Performance Computing (HPC)" service platform. This strategy not only clarifies the company's dual path of short-term focus and long-term positioning but also demonstrates its determination to occupy a key position in global digital economy infrastructure, potentially opening new growth space.

In the short term, focusing on operational optimization and cost leadership while consolidating competitive foundations remains key to development. Cango Inc. will concentrate resources on three key actions to fully tap the potential of existing assets and accumulate energy for long-term transformation.

First, maximizing asset value of existing hash rate. The company's current 50 EH/s hash rate cluster is the core source of current revenue and the primary optimization target in the short term. To achieve full release of production potential, Cango Inc. will continue improving operational refinement and intelligence levels, constantly enhancing Bitcoin production efficiency to support steady performance growth.

Second, deepening energy cost control. Electricity costs are the core competitive element of mining business. Through acquiring and cooperatively building low-cost mining facilities, the company can not only further compress comprehensive costs but also strengthen its industry-leading cost position, enhancing resistance to Bitcoin price volatility.

Third, expanding green energy storage business to create new energy management capabilities. Cango Inc. actively expands operational capabilities in green energy and storage projects. This initiative represents not only cost optimization but also strategic investment in new business capabilities, preparing for the company's future role as an "energy operator."

While continuously consolidating short-term business foundations, Cango Inc. has clearly identified "HPC (High Performance Computing)" as a future strategic priority, particularly around high-value scenarios involving AI computing power demand and energy synergy, constructing a second growth curve.

On one hand, the company plans to implement its first batch of HPC pilot projects in the first half of 2026, marking its official entry into high-performance computing services. This transformation logic is very clear: Cango Inc.'s accumulated energy acquisition and management capabilities, large-scale data center operational experience, and key technologies like low-power cooling from Bitcoin mining can naturally extend to HPC application scenarios including AI training, cloud computing, and scientific computing. HPC business not only has far higher unit revenue potential than traditional mining but can also effectively hedge against cyclical volatility in digital currency markets, improving overall revenue stability and growth.

On the other hand, leveraging its existing energy cooperation network and infrastructure capabilities, Cango Inc. is positioned to become an important computing power infrastructure provider in the AI industry chain. The company has already begun related technical verification and cooperation coordination, gradually building an HPC ecosystem integrating "energy security—computing power output—technical services."

Cango Inc.'s evolution from Bitcoin mining to a comprehensive "Energy + HPC" platform represents a development path that is both forward-looking and feasible. Short-term consolidation through lean operations and cost control, while long-term expansion through capability migration and value upgrading opens new space.

**Conclusion: Strategic Transformation Reshapes Valuation Logic, Energy and Computing Power Synergy Opens New Growth Cycle**

The second quarter 2025 financial report not only demonstrates Cango Inc.'s excellent operational capabilities and financial resilience but also reveals its ongoing profound valuation logic reconstruction. From successful transformation from traditional business to a leading global Bitcoin mining company, and then clearly evolving toward a comprehensive "Energy + HPC" platform, Cango Inc. has gradually built a diversified value support system.

In the short term, the company has established strong competitive moats in Bitcoin mining through leading hash rate scale, excellent cost control, and continuously optimized operational efficiency. Steady cash flow and sufficient funding reserves provide a solid foundation for business expansion. Strategic investments behind one-time accounting adjustments further reflect management's forward-thinking approach focused on long-term positioning.

In the long term, the company's strategic path centered on energy management capabilities and extended through computing power output becomes increasingly clear. Expansion of green energy and storage business reduces energy costs while accumulating new operational capabilities. HPC business planning and pilots potentially open the more promising market space of AI computing services, achieving transformation from "cyclical growth" to "sustainable development."

As the company moves from single mining business toward a comprehensive "Energy + Computing Power" ecosystem platform, its valuation logic is no longer limited to Bitcoin price volatility but should comprehensively consider its resource capabilities in green energy, growth potential in high-performance computing markets, and platform value as a digital infrastructure provider.

In conclusion, Cango Inc. is redefining its role in the global digital economy and is expected to continue gaining recognition and revaluation from capital markets through clear strategy and solid positioning.