Emerson Zhao

Emerson Zhao inquired about Cango's strategy for utilizing Bitcoin holdings to fund business expansion, manage market risk, or support operations, especially given current Bitcoin prices. He also asked about the discrepancy between Cango's operational and deployed hash rates and the timeline for achieving full utilization.

Answer

CFO Michael Zhang stated Cango maintains a Bitcoin holding strategy, retaining all mined Bitcoin as a strategic reserve, and will use flexible financing channels for new initiatives. CEO Paul Yu explained that temporary downtime from machine relocations and power commissioning caused the hash rate gap, but uptime is now above 90%, with full utilization being an industry challenge due to external factors.

Emerson Zhao inquired about Cango's strategy for utilizing Bitcoin holdings to fund new business expansion, manage market risk, or support operational needs, especially given current Bitcoin prices. He also asked about the discrepancy between the operational hash rate and the deployed hash rate, seeking clarification on the factors behind this gap and the timeline for achieving full utilization.

Answer

CFO Michael Zhang stated that Cango maintains a Bitcoin holding strategy, retaining all mined Bitcoin as a strategic reserve, and will use a flexible approach across debt, equity, and other financing channels for new initiatives. CEO Paul Yu explained that temporary downtime from machine relocations and power system commissioning caused the hash rate gap, but uptime has stabilized above 90%, which is considered industry-leading, with ongoing efforts to enhance efficiency.

Emerson Zhao asked about Cango's computing power roadmap and capital expenditure plans for the next 12 months, including potential mining site acquisitions or new miner orders. He also inquired about the progress of the company's green energy plus storage strategy.

Answer

CFO Michael Zhang outlined plans to unlock the value of the current 50 EH computing power through efficiency improvements, machine upgrades, and selective acquisition of low-cost mining sites, citing the Georgia facility as an example. He emphasized strict capital expenditure discipline while evaluating opportunities in green energy storage and AI HPC. CEO Paul Yu added that the green energy plus storage initiative is a key strategic objective, pursued through global M&A targets and pilot projects with experienced partners.

Emerson Zhao from Goldman Sachs inquired about Cango's 12-month roadmap for computing power expansion, including capital expenditure plans for acquiring mining sites or new miners, and sought an update on the progress of their green energy plus storage strategic direction.

Answer

CFO Yongyi Zhang outlined plans to optimize the current 50 exahash capacity through efficiency improvements, machine upgrades, and selective low-cost mining site acquisitions, while maintaining strict capital expenditure discipline. CEO Peng Yu added that the green energy plus storage strategy is advancing via global M&A targets and pilot projects with experienced partners to gain management expertise.

Emerson Zhao of Goldman Sachs inquired about Cango's perspective on current cryptocurrency market trends and the company's strategy to address the challenges of increasing global computing power and mining difficulty.

Answer

CFO Yongyi Zhang responded that Cango sees both opportunities and challenges in the crypto market and will remain flexible. To combat rising mining difficulty, the company will optimize existing operations, expedite the delivery of its next 18 exahashes of computing power, and actively monitor potential acquisition opportunities to enhance production capacity.

Emerson Zhao of Goldman Sachs inquired about Cango's outlook on cryptocurrency market trends and its strategy for addressing the challenges of increasing global computing power and mining difficulty.

Answer

CFO Yongyi Zhang stated that Cango sees both opportunities and challenges in the crypto market and will adapt its strategies accordingly. To combat rising mining difficulty, the company will optimize existing operations, expedite the delivery of its next 18 exahashes per second of computing power, and actively seek acquisition opportunities to enhance production capacity.