Release Date: March 07, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: What are the company's expectations for future growth and strategic direction? Will Cango continue its automotive business after the transformation? A: (Lin Jiayuan, CEO) For future growth, we expect to produce around 6,000 Bitcoins annually with our current 32 EH hashrates and plan to expand to 50 EH. We aim to export 1,500 used cars in 2025. Strategically, we focus on expanding mining operations and maintaining a leading position in computing power while optimizing existing facilities for efficiency and profitability. We will continue to develop our automotive business, particularly in used car exports.
Q: Why did Cango decide to enter the Bitcoin mining industry, and will Bitcoin transactions be regulated? Does the company plan to sell its Bitcoin holdings? A: (Lin Jiayuan, CEO) We entered Bitcoin mining due to its potential and our liquidity from exiting the loan facilitation business. The $400 million transaction was conducted offshore, not subject to Chinese regulation. We plan to mine and hold Bitcoins, optimizing our financial model, but remain open to adjusting holdings based on market conditions.
Q: What is Cango's expectation for Bitcoin prices, and what are the company's competitive edges in Bitcoin mining? A: (Lin Jiayuan, CEO) We anticipate Bitcoin prices to range between $90,000 to $120,000 in 2025. Our competitive edge lies in our strong expertise and talent pool from the automotive industry, and our strategic focus on energy plus computing power. The crypto industry has high entry barriers, including substantial capital investment and operational readiness.
Q: What is Cango's hashrate target for 2025, and how does the company plan to optimize energy and reduce costs? A: (Zhang Yongyi, CFO) We aim to become the second-largest publicly listed Bitcoin mining company by computing power. Our average energy consumption is 21.6 joule per TH. We plan to negotiate lower electricity costs and explore cost-effective energy solutions, including projects in the Middle East and Australia.
Q: What is the average mining cost per Bitcoin, and can you describe your mining farms and rigs? A: (Zhang Yongyi, CFO) The average cost to mine a Bitcoin, excluding depreciation, was USD67,769.9 in Q4. We operate over 138,000 machines, primarily S9 series, with nearly 90% water-cooled. Our operations span the U.S., East Africa, Oman, Paraguay, and Canada.
Q: Will there be enough cash flow to support business expansion after strategic transactions? A: (Zhang Yongyi, CFO) We assessed our cash flow before the acquisition, with USD256 million settled in cash and the rest through stock. We maintain sufficient cash and liquidity to support operations and are exploring ways to enhance capital efficiency.
Q: How will Bitcoin price volatility impact Cango's performance? A: (Zhang Yongyi, CFO) We view Bitcoin's price fluctuations as short-term and are optimistic about its long-term value. We maintain substantial capital reserves to manage potential volatility, confident in Bitcoin's positive impact on our performance.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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