Cango’s Strategic Pivot: Funding AI Ambitions with Crypto Reserves

Cango Inc. is navigating a dual challenge. As severe weather disrupted its core Bitcoin mining operations in January, the company's leadership initiated a deliberate strategic shift. To finance an expansion into artificial intelligence, Cango is selectively liquidating portions of its cryptocurrency holdings.

Key operational metrics for January 2026 highlight this transitional phase:

• Bitcoin Mined: 496.35 BTC (Previous Month: 569.0 BTC)
• Average Daily Production: 16.01 BTC (a 12.8% decrease month-over-month)
• Bitcoin Sold: 550.03 BTC
• Bitcoin Treasury (End of January): 7,474.6 BTC

A notable development from the monthly update is that Cango sold more Bitcoin than it produced during January. Management has explicitly directed the proceeds from the sale of 550.03 BTC toward funding its platform for AI inference applications and other growth initiatives.

This move addresses a pressing financial context. The company has reported declining revenues and net losses over the preceding three years. The strategic focus is now perceptibly moving away from pure-play cryptocurrency mining toward a more diversified energy and computing platform. The critical question for investors is whether the AI segment can deliver the profit turnaround that the traditional mining business has recently failed to provide.

Should investors sell immediately? Or is it worth buying Cango?

Operational Headwinds from Extreme Weather

The month-over-month production decline was primarily attributable to external factors. Intense blizzards and extreme cold across North America forced temporary operational shutdowns at several of Cango's key facilities. Consequently, the average utilized computing power (hashrate) fell to 37.02 EH/s from 43.36 EH/s in December.

The fact that the total installed capacity remained stable at 50 EH/s confirms the issue was operational downtime, not a reduction in infrastructure. A favorable adjustment in Bitcoin network difficulty helped partially offset the weather-related losses.

Market Anticipates Quarterly Results

Cango operates more than 40 sites globally and began pilot projects for distributed AI computing as early as late 2024. Market observers interpret the targeted Bitcoin sales as a proactive measure to secure necessary liquidity for this business transformation, reducing reliance on traditional capital raises.

The upcoming financial report is expected to provide clarity on the progress of this strategic realignment. Cango is scheduled to release its next quarterly results between March 5 and March 13, 2026.