Bitcoin miner Cango’s $700M BTC reserve dwarfs $485M market cap as production rises

• Cango’s Bitcoin reserve is valued at about $700 million, exceeding its stock market capitalization.
• December production rose 4.1% to 569 BTC, lifting total holdings to 7,528.3 BTC.
• The miner controls roughly 5.4% of global hashrate and is set for a $10.5 million shareholder investment boost.

Cango Inc.’s Bitcoin treasury is now worth more than the company’s entire stock market capitalization, returning attention to past “severely undervalued” assessments of the firm’s stock valuation by HCW and Greenridge analysts last month.

The Dallas-based miner announced on Monday, January 5, 2025, that it produced 569 Bitcoins in December, which is a 4.1% month-on-month increase that brought its total holdings to 7,528.3 BTC.

With current market prices undulating around $93,000 per Bitcoin, the company’s digital asset reserves are valued at roughly $700 million, which is more than its New York Stock Exchange (NYSE) market capitalization of over $568 million, as of the time of writing.

The disparity highlights the disconnect between Bitcoin miners’ operational assets and their equity valuations, especially as many participants in the sector continue to face declining profitability and increasing operational costs.

Cango’s CANG stock is up 16% pre-market today, January 6. It is also up double-digits since its expansion into cryptocurrency mining, which it entered only in November 2024.

Cango’s stock defies mining industry struggles

Cango’s December performance stands out against a backdrop of mounting pressure on Bitcoin miners globally.

The company maintained an average operating hashrate of 43.36 exahashes per second (EH/s) during the month, with a deployed capacity of 50 EH/s, which is around 5.4% of the total global Bitcoin network hashrate, according to the company.

“Throughout 2025, Cango delivered strong and consistent operational growth,” said Paul Yu, the company’s CEO and a director. “In December, due to favourable network difficulty adjustments, we maintained stable operating hashrate levels and achieved higher daily bitcoin production, bringing our total bitcoin holdings to 7,528.3 BTC.”

The company’s production gains come as other miners have struggled with profitability concerns. Industry data from Hashrate Index indicates that while network difficulty has stabilized, many operations are operating at or near breakeven levels, raising questions about potential miner capitulation.

Cango closes in on top-10 Bitcoin treasury spot

Cango has already surpassed GD Culture, becoming the 15th listed bitcoin reserve company. The company has adopted a “HODL” strategy, explicitly stating it does not currently intend to sell any of its Bitcoin holdings.

However, unlike heavyweights like Strategy, formerly MicroStrategy, that have embraced this strategy, Cango’s significantly smaller market capitalization creates a more pronounced valuation dynamic, with its Bitcoin holdings alone representing approximately 140% of its equity value.

The company received a vote of confidence with investors committing funds for the company.

According to Yu, “in late December, a major shareholder decided to increase its investment in Cango with a US$10.5 million commitment, which is expected to close in January 2026, representing a powerful vote of confidence in our strategic roadmap.”

Cryptopolitan reported in December that Enduring Wealth Capital Limited (EWCL) made a $10.5 million commitment to Bitcoin miner Cango following an earlier $70 million funding deal announced in June 2025.

Yu added that the investment would help Cango “drive greater bitcoin mining efficiency, and accelerate the parallel development of our energy and AI compute platform in 2026.”

Diversification beyond mining

Just like many miners who have faced the recent challenges of the mining sector and embraced diversification, Cango is pursuing a diversified strategy.

The company operates more than 40 mining sites spanning North America, the Middle East, South America and East Africa, while also developing pilot projects in integrated energy solutions and distributed artificial intelligence computing.

Cango also continues to maintain its original business line, AutoCango.com, an international used car export platform, representing an unusual hybrid corporate structure within the cryptocurrency mining sector.

For now, analysts are looking for signals that Cango can bridge the gap between its Bitcoin treasury value and market capitalization.

However, the success of its Bitcoin mining business is indisputable, which spilled over to the stock side as it rose by as much as 13% yesterday, closing in on the $2 mark following the announcement.

As of mid-December, HCW analysts made a case for the CANG stock hitting $3 as while Greenridge analysts were more bullish, with a $4 target price for Cango.

AI ambitions move up on priority list

Cango has consistently hinted at plans to become a globally distributed AI-compute network. The firm is already working towards this goal by leveraging its existing compute infrastructure and access to gigawatts of permitted, grid-connected power capacity across its global footprint.

“The nature of competition in AI has shifted from software algorithms to the scarcity of power and space,” Juliet Ye, the company’s IR Director, explained to Cryptopolitan.

Cango is developing what it describes as an innovative, plug-and-play AI infrastructure solution designed to enable Bitcoin mining sites to transition into facilities capable of running AI inference workloads without the prohibitively expensive infrastructure upgrades that often cost tens of millions of dollars and tend to deter such conversions.

The company has already validated its solution in real-world environments, “Plans are underway to replicate this model across several mining sites within this year,” added Juliet.

Cango’s strategy addresses growing demand from the long-tail inference market for geographically distributed computing power closer to data sources. It also helps numerous small and medium-sized BTC mining sites worldwide to transition to AI without worrying about the attendant infrastructural cost.

In the near term, the company aims to unlock the full value of its 50 EH/s mining capacity while selectively entering the GPU compute leasing market, with medium-term plans to develop regional AI networks and long-term ambitions of building a globally distributed compute grid backed by multi-year compute offtake agreements.

Source