Cango Stock Plunges 21% Amid Q2 Loss and Mining Fleet Restructuring
Cango's stock plummeted by 21% to $1.89 on Tuesday morning after the company reported a significant second-quarter loss of $81.6 million, alongside a substantial decline in revenue.
The cryptocurrency mining firm attributed the net loss and reduced revenue primarily to its efforts to scale back older S19 bitcoin mining rigs and transition towards a leaner fleet size.
As part of this strategic shift, Cango aimed to reduce per-bitcoin mining costs by 5% and started expanding into GPU computing at its Georgia site, which is expected to generate revenue in the third quarter.
The company's operating hashrate reached 27.58 EH/s, including 19.94 EH/s of self-mining capacity and 7.74 EH/s of leased capacity, resulting in the mining of 656 bitcoin during the quarter.