Emerson

Emerson Zou of Goldman Sachs asked for the rationale behind entering the Bitcoin mining industry, whether the transactions are subject to regulation, and if Cango has plans to sell its Bitcoin holdings.

Answer

Executive Jiayuan Lin explained the move into Bitcoin mining was driven by a positive outlook on the cryptocurrency's future and its potential to utilize surplus electricity, a discovery made while exploring other energy projects. Lin clarified the $400 million acquisition was an offshore transaction not subject to Chinese regulation. He stated the current strategy is to 'mine and hold' Bitcoin to optimize the financial model, though they remain open to adjusting holdings based on market conditions.

Emerson from Goldman Sachs questioned the rationale behind the lowered revenue guidance and asked how management balances long-term strategic goals with short-term financial pressures.

Answer

Executive Jiayuan Lin stated the reduced guidance reflects a strategic scaling back of certain operations to reallocate resources and cut costs in response to market conditions. He elaborated that the company balances short- and long-term objectives through an integrated planning process, focusing on immediate execution efficiency and cost control while maintaining strategic flexibility to adapt to market changes.