August 31, 2026 - Cango Inc. (NYSE: CANG, hereinafter referred to as "Cango" or "the Company"), a leading Bitcoin mining company, leveraging a global operational layout to create a fusion platform for energy and AI computing power, today announced its unaudited financial results for the second quarter ended June 30, 2026.

Financial and Operational Highlights for Q2 2026

• Financial Performance: Despite pressures on income from the overall mining environment, the Company has continuously advanced its diversification strategy through the commercial progress of EcoHash and strict cost management. In Q2 2026, the Company achieved total revenue of $50.8 million, with the Bitcoin mining business contributing $47.4 million, serving as the main source of income. The Company reported a net loss of $81.6 million during the period, primarily due to non-cash impairments and disposal losses of mining machines. As of the end of the period, the Company held 1,056 Bitcoins as digital asset reserves, with long-term debt amounting to $31.2 million, reflecting an improved balance sheet structure.
• Mining Operations and Costs: To strengthen strict cost management, the Company has actively optimized mining business scale, disposed of marginally efficient mining machines, and partially implemented a leasing model. As of June 30, 2026, total operational hash rate reached 27.58 EH/s, including self-operated hash rate of 19.84 EH/s and leased hash rate of 7.74 EH/s. This quarter, the Company mined a total of 656 Bitcoins. Benefiting from optimization of the machine mix and strict execution, the average cash cost per Bitcoin decreased by approximately 5% quarter-over-quarter, down to $73,313. The Company has also begun selectively implementing hedging strategies to mitigate the impact of price fluctuations on operations.

Mr. Paul Yu, CEO of Cango, stated: "In the Bitcoin mining business, we continue to focus on unit economic efficiency rather than scale expansion. At the same time, the AI modular construction at the LN mining site is also being advanced. The Georgia mining site completed its renovation in early July, with infrastructure capable of supporting up to 3 megawatts, leaving room for future expansion. Racks have been delivered and installed, and GPU hardware has been procured and received in batches to support phased ramp-up. In the future, we plan to implement two business models: one is bare-metal GPU hosting, utilizing our infrastructure to provide standardized deployment environments; the second is coexistence services aimed at enhancing overall infrastructure utilization. Our Georgia mining site is onboarding customers, and revenue is expected to be recognized in the third quarter. To support customers requiring near-deployment, we have begun operating testing nodes in Texas and on the West Coast as part of the phased ramp-up. Looking ahead, we are continuously evaluating the potential for new sites and the feasibility of self-built facilities."

Mr. Simon Tang, CFO of Cango, stated: "This quarter, we recorded a net loss of $81.6 million, primarily due to non-cash impairments and disposal losses of mining machines. We also initiated a Bitcoin hedging program this quarter, aimed at managing the risk of Bitcoin price volatility and enhancing the predictability of operating cash flows. We strictly consider hedging as a risk management tool, rather than for speculative purposes. The relevant short positions have been reflected on the balance sheet and will be adjusted as we continue to strictly execute this program."

Financial Performance of Continuing Operations for Q2 2026

Revenue

This quarter, total revenue was $50.8 million, with Bitcoin mining revenue of $47.4 million and other income of $3.4 million. Compared to Q1 2026, total revenue decreased by approximately 50%, primarily reflecting the Company's proactive reduction of operational hash rate, phasing out old and inefficient S19 series mining machines, and transitioning some capacity to a hosting leasing model. Although this strategic adjustment had a short-term impact on revenue, it reduced operating costs and improved overall cash flow status.

Operating Costs and Expenses

This quarter, total operating costs and expenses were $131.4 million. These costs were primarily related to the Company's Bitcoin mining business and the recognition of impairment losses on mining machines, including losses from changes in the fair value of crypto assets.

• Cost of revenue (excluding depreciation below) was $50.7 million, down from $99.6 million in Q1 2026, primarily due to decreased electricity and hosting costs after reducing hash rate.
• Depreciation was $16.9 million, down from $29.4 million in Q1 2026.
• General and administrative expenses (including related-party expenses) totaled $8.4 million.
• Impairment loss on mining machines was $42.9 million.
• Loss on disposal of mining machines was $8.5 million.
• Loss from changes in the fair value of crypto assets was $4.1 million, compared to a loss of $151.8 million in Q1 2026. This change was mainly due to the stabilization and moderate recovery of Bitcoin market prices this quarter, along with the initial effects of the newly launched Bitcoin hedging program.

Operating Loss

Operating loss for Q2 2026 was $80.6 million, while operating loss for Q1 2026 was $254.4 million.

Net Loss from Continuing Operations

Net loss from continuing operations for Q2 2026 was $81.6 million, while net loss from continuing operations for Q1 2026 was $261.1 million. The net loss was mainly due to non-cash impairments and disposal losses.

Adjusted EBITDA

Adjusted EBITDA for Q2 2026 was a loss of $10.7 million, which included a loss of $4.1 million from changes in the fair value of crypto assets, while adjusted EBITDA for Q1 2026 was a loss of $154.1 million.

Balance Sheet

As of June 30, 2026, the Company held:

• Cash and cash equivalents of $10.1 million, compared to $7.2 million as of March 31, 2026.
• Inventory of 1,056 BTC.
• Net book value of mining machines of $58.7 million.
• Long-term debt (related parties) of $31.2 million, compared to $30.6 million as of March 31, 2026.

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