Crapto Jolt gets revenue growth, and Bamboo Works

The company, whose main business was previously trading, said that its revenues rose in the fourth quarter after moving to bitcoin mining.

Main meals:

• Kango’s revenues rose more than five times to 668 million yuan in the fourth quarter of last year, after launching a bitcoin mining operation last November
• The company will add 18 of the new capacity by the end of this quarter, which reaches a total of 50 E, which makes it the second largest bitcoin mines in the world

By Doug Young

There is nothing like a new business model to put some new spring in your step.

After watching its revenues, it diminishes for a year and a half, Cango Inc. (Cang.us) returned in the last quarter of last year, following a major transformation in the field of cryptocurrency in November. This was not an accurate shift. The company’s revenues increased by more than one worker between five to 668 million yuan (92 million dollars) for a quarter from 130.2 million yuan in the previous year.

The last number not only determined the growth of Kangu’s first revenue on an annual basis since the second quarter of 2023, but also the highest total since that quarter. In one of the impressive last-featted currencies, this number was only three months before the company’s expectations to obtain the fourth-quarter revenues of only 15 million yuan to 17.5 million yuan-perhaps the largest “victory” revenue ever for any company.

The transformation of the encryption appears to be scheduled to continue in Cango, which has announced a great expansion of mining capacity in the current quarter and the possibility of more in the second half of the year. The company also realizes the risk of linking its fate to such a volatile sector, and has widely discussed some of the steps it takes to control these risks. As a new upcoming industry, Cango is also still on a sharp educational curve, which is reflected in its relatively high costs for both bitcoin mines compared to some of their older peers. These high costs are also owed by the Canggo Business Model, which is different from many of its peers by requesting a much lower investment, but with high operating costs.

Surprising revenues condemn the move completely to Cango to the encrypted currency in November. Before that, the company participated in the field of auto, first as a carpet of car loans, and recently as a provider of local and international car trading services. It was good when the automotive industry in China was flourishing for most 21^street A century, where the United States has exceeded to become the largest market in the world.

But the market has become stuck in the slow growth situation over the past few years while slowing the Chinese economy, which has increased the extra capacity over the years of prosperity. This has led to endless price wars as most companies lose money, which reduces their car business to avoid falling into the same trap.

The reaction to the latest Canggo report after its release last Thursday was relatively steadfast, as its shares increased by 2.1 % the next day. The arrow has doubled over the past six months since Cango announced for the first time the transition to Crypto Mining in early November. But in particular, stocks have also decreased by 28 % so far this year, following a 8 % decrease for Bitcoin, indicating that the company’s future will inevitably follow bitcoin prices to some extent.

This reflects the modernity of industry, Canggo shares are currently trading relatively low from price to profits (P/E) ranges between 4 and 8, based on our accounts using their potential profit for this year derived from their performance in the fourth quarter. This is behind a percentage in favor of industry Mara (Mara.us). The comparisons may be the best Blades (cifr.us) and BitFufu (Fufu.us), which trades higher than Cango with P/E of 12, which means that Cango shares still can have more upward trend as more investors discover the company.

High mining costs

Cango announced for the first time its plans to purchase $ 400 million mining machines in November, and completed the first segment of the same month with a value of $ 250 million. The company is currently running more than 138,000 machines in the United States, East Africa, Oman, Paraguay and Canada, as the United States hosts about 40 % of its energy.

This mining process started in mid -November, when 363.9 Bitcoin held that month and another 569.9 in December. She liquidated 538.2 Bitcoin in January and 472.2 in February. During that period, its production decreased from 18.4 Bitcoins, which is mined every day in December to 16.9 in February, reflecting the increasing competition for new bitcoin coins that are created at a fixed rate by algorithm regardless of the number of people who participate in mining.

The company’s production must soon get one batch, as Cango revealed that it expects to complete its acquisition of mining machines worth the remaining $ 150 million by the end of this month. CEO Lin Jiawan said that Kango will focus on stabilizing and operating this capacity in the first half of this year, as well as improving its efficiency.

The company said that its cost to extract each bitcoin, with the exception of the low value of its mining machines, amounted to 67,769.90 dollars in the fourth quarter. While this is less than the current average of the current industry of about $ 86,000, according to Macromicro on the site, it is still slightly higher than Mara 51,035 in its latest financial report. Cango noticed that the new facilities will raise their ability from the current 32 EXhashes to 50 EH, making them the second largest mines in the world behind MARA only.

One of the important reasons for the high cost of each bitcoin is a Canggo business model for capital light, as it installs its devices in the current facilities built by others. In comparison, Mara and many others build their mining facilities, which requires more capital but significantly reduce electricity costs, which is one of its largest expenses. Cango also has a low decline cost by using used mining machines, unlike others like Mara, which uses new machines.

“In the second half (from 2025), we will follow the strategy of expanding retail prices, and actively searching for valuable assets to increase our total ability,” Lin said at the Investor’s call to Kango.

Regarding the operating costs, Bitcoin’s rapid accumulation was more clear in Cango’s general and administrative expenditures, which have multiplied almost three times to 127.9 million yuan in the fourth quarter of 45.6 million yuan in the previous year. But the huge jump in revenue was more than enough to make up for this, as the company reported 55.9 million yuan, which reflected the loss of 103.8 million yuan in the previous year.

Kango also commented on her business in older cars, including her progress in the end of the original car financing work. She also revealed that her latest international work expects to obtain her first sales amounting to about 15 million dollars this year by exporting 1500 cars.

The company also discussed some of the steps it takes to control risks related to price fluctuations, including the creation of “a comprehensive market control protocol and a strong policy analysis mechanism.” On the organizational front, one of the most urgent risks of the company can be its base in China, where the encrypted currency is officially banned, although all Cango mining operations are outside the country. In this regard, this can eventually follow many of its former Chinese peers by moving its headquarters abroad, with Singapore as one of the most popular destinations for such deportation.

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