Joey Chai

Joey Chai questioned how the recent Bitcoin price pullback would affect Cango's operating pace for Q4 and 2026, and how long the company could operate under extreme market conditions with its current cash and Bitcoin holdings, including any worst-case plans. He also asked if the Joder site acquisition contradicted the asset-light model and about future expansion favoring owned versus leased sites.

Answer

CFO Michael Zhang confirmed frequent internal stress tests, noting Cango's flexibility to adjust operations and Bitcoin holding strategy under extreme scenarios. CEO Paul Yu clarified the Joder site acquisition as an upgrade for strategic advantages, not a pivot, emphasizing a balanced model of lease-first with selective acquisitions based on strict criteria for cost and scalability.

Joey Chai questioned the impact of Bitcoin's sharp pullback from its October high on Cango's operating pace for Q4 and 2026. He also asked how long the company could operate under extreme market conditions with its current cash and Bitcoin holdings, and if a worst-case plan is in place. Furthermore, he inquired if the acquisition of the Joder site, being self-owned, contradicts Cango's asset-light model and whether future expansion would favor owned or leased sites.

Answer

CFO Michael Zhang confirmed that Cango conducts frequent internal stress tests and can dynamically adjust operations, including shutting down high-cost sites and reallocating hash power, to control expenses and manage risk. CEO Paul Yu clarified that the Joder site acquisition is an upgrade to the asset-light model, chosen for low-cost power and grid stability, not a strategic pivot. He stated that Cango will continue a balanced model of lease-first with selective strategic acquisitions, prioritizing efficiency and cost advantages.