Bybit
Cango Cuts Mining Utilization to 70% of Capacity
Bitcoin mining company Cango reported reduced utilization of its mining capacity in February. The company said its operations ran about 30% below installed capacity during the month. This indicates increasing pressure on miners as industry economics weaken.
According to the report, Cango’s average operating hashrate reached 34.55 EH/s. However, the company currently has about 50 EH/s of deployed capacity.
Cango said the lower operating rate was caused by temporary downtime. These interruptions are linked to fleet optimization and equipment relocation. The company is also renegotiating hosting agreements with partners. At the same time, it is upgrading mining hardware and divesting certain machines.
Part of the mining fleet is being moved to regions with lower electricity costs.
During February, Cango produced 454.83 BTC. As of February 28, the company held 3,313.4 BTC on its balance sheet. However, the broader Bitcoin mining environment remains challenging.
Hashprice Decline Pressures Mining Economics
One of the main factors affecting mining profitability is the decline in hashprice. Hashprice measures daily mining revenue per unit of computing power. It is widely used to track mining economics. In recent months, hashprice has dropped below $40 per PH/s per day. For long periods, the metric has remained in the low $30 range.
This trend significantly reduces margins for many Bitcoin mining operators.
Key challenges for miners include:
- declining hashprice;
- rising electricity prices;
- increasing network difficulty;
- higher operating costs7
Cango’s cost structure makes the pressure particularly visible. The company’s fleet hashcost has historically been around $40 per PH/s.
This cost level reflects the company’s rapid entry into Bitcoin mining last year. Cango purchased large volumes of Antminer S19 XP machines from Bitmain. The devices were deployed through colocation agreements at Bitmain-operated facilities.
This asset-light strategy allowed the company to scale quickly to 50 EH/s. However, reliance on hosting providers increases operational risk when mining revenue falls.
Large Bitcoin Sale to Reduce Debt
February also saw major balance-sheet actions by the company. During a sharp market selloff in early February, Cango liquidated a large portion of its Bitcoin reserves.
The company sold 4,451 BTC over a single weekend. This amount represented about 60% of its holdings at that time. Overall, Cango sold 4,616 BTC during February. The volume was more than ten times higher than the company’s monthly Bitcoin production.
The move was aimed at reducing outstanding loans and improving liquidity.
These developments highlight how mining companies are adjusting strategies amid falling profitability. Many operators are optimizing fleets, renegotiating hosting contracts, and relocating infrastructure to regions with lower energy costs.
