Next 6-12 months crucial for prediction platforms like Kalshi and Polymarkets
Investing.com - H.C. Wainwright lowered its price target on Cango Inc. (NYSE:CANG) to $3.00 from $8.00 on Thursday, while maintaining a Buy rating on the stock following the company’s third-quarter earnings report. This comes as CANG shares have fallen 14% over the past week and are currently trading at $1.29, significantly below their 52-week high of $2.10. According to InvestingPro data, the stock appears slightly undervalued based on Fair Value estimates.
The firm’s revised outlook reflects Cango’s strategic shift toward developing and operating modular, containerized HPC-engineered data centers, which are currently running in beta pilots of multiple 1MW containers. According to H.C. Wainwright, investors should focus less on Cango’s bitcoin mining initiative and more on this emerging business direction. This pivot comes as the company operates with a significant debt burden of $407.48 million and a debt-to-capital ratio of 0.48.
Cango reported third-quarter revenue of $224.6 million on Monday, December 1, representing a 61% increase from $139.8 million in the second quarter. The company attributed this sequential growth to better mining efficiency, reduced curtailment, and higher operating hash rates throughout the quarter. This performance contributes to Cango’s impressive 133.09% revenue growth over the last twelve months, reaching $621.63 million. Despite this growth, the company faces challenges with weak gross profit margins of just 16.55%.
The bitcoin miner has improved its mining fleet performance through the third quarter by replacing underperforming S19 machines with used S21 models while maintaining its 50Eh/s nameplate hash rate. This approach has allowed the company to operate with less power and fewer machines.
H.C. Wainwright noted that Cango is not expected to further expand its hash rate beyond the current 50Eh/s target, though it may opportunistically upgrade its fleet. In October, Cango delivered a 46.1Eh/s operating hash rate, representing 92% fleet utilization compared to 43.2Eh/s or 86% utilization based on the second-quarter average.
In other recent news, Cango Inc. reported mining 546.7 bitcoin in November 2025, a decrease from the 602.6 bitcoin produced in October. The company maintained a deployed hashrate of 50 EH/s, with an average operating hashrate of 44.38 EH/s, slightly down from 46.09 EH/s in October. Additionally, Cango has expanded its bitcoin mining operations to 50 EH/s within its first year after transitioning from an automotive transaction service platform. This expansion included acquiring 32 EH/s of second-hand mining machines initially, followed by an additional 18 EH/s in June 2025.
Furthermore, Cango began trading its Class A ordinary shares on the New York Stock Exchange (NYSE) after terminating its American Depositary Receipt (ADR) program. This transition, authorized by the NYSE, allows U.S. investors to hold shares directly, with each ADS holder receiving two Class A ordinary shares, effectively creating a 2-for-1 share split. The company’s board had previously approved this termination, with trading of the Class A ordinary shares commencing on November 17, 2025. These developments reflect Cango’s strategic moves in both its operational and financial structure.
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