Cango Sells 550 BTC as Mining Economics Tighten

Bitcoin mining company Cango adjusted its treasury strategy in January as industry economics deteriorated. The firm sold 550.03 BTC while producing 496.35 BTC during the month. The sale represented roughly 111% of its monthly bitcoin output.

This marked the first time Cango liquidated mined bitcoin since pivoting into proprietary mining in late 2024. At that time, the company exited its legacy auto-financing business and repositioned itself as a large-scale bitcoin miner.

As a result of the January sales, Cango’s total bitcoin holdings declined to 7,474.6 BTC, down from 7,528.3 BTC at the end of 2025. The reduction highlights growing liquidity pressure across the mining sector.

Weather disruptions and lower hashrate

Cango operates a mining fleet with a nominal capacity of 50 EH/s. However, its average operating hashrate fell to 37.02 EH/s in January, compared with 43.36 EH/s in December. The decline was partly driven by extreme cold and winter storms in North America.

Chief executive Paul Yu said weather-related curtailments reduced uptime across several facilities. Difficulty adjustments helped soften the impact, but did not fully offset production losses.

Yu added that the company plans to sell newly mined bitcoin selectively. Proceeds will support near-term growth initiatives, including expansion of its inference and AI-related computing platforms.

Profitability under pressure

According to TheMinerMag, Cango’s fleet-level hashcost is estimated at roughly $39 per PH/s per day. The figure reflects the company’s reliance on older-generation machines, primarily Bitmain’s Antminer S19 XP series. Corporate overhead and financing costs are not included.

During January, bitcoin’s average hashprice fell below that level. This suggests Cango was mining at a gross loss before accounting for broader operating expenses.

Across the industry, lower transaction fees, elevated network difficulty, and still-high energy prices continue to compress margins. As a result, more miners are reassessing HODL strategies in favor of balance sheet flexibility and alternative revenue streams.

Read also: Falling Bitcoin Price Pushes ASIC Miners Into Losses