Cango $Cango(CANG.US), an undervalued "Eastern MicroStrategy".

This wave of "MicroStrategy-ization" has swept through the capital markets: loading Bitcoin onto the balance sheet, coupled with the narrative of "long-termism + capital tools", can indeed command a pricing premium. But the script is too easy to copy, leading to a flood of imitators who "talk the talk but don't walk the walk"—announcements full of slogans, yet vague on actual holdings, let alone systematic disclosure and capital closure: no clear refinancing or risk control arrangements, nor verifiable data rhythms.

The result is "more and more companies spinning tales, but few can truly thicken and stabilize their balance sheets".

How to distinguish between "storytellers" and "the real deal"? In the author's view, investable "MicroStrategy-style" companies must meet the following criteria: embedding long-term holding into corporate governance, using capital market tools (e.g., share issuance/convertible bonds) as disciplined balance sheet expansion methods, high-frequency and reviewable financial disclosures, and stable cash flow. Only when these three elements resonate in harmony can narrative premiums solidify into cycle-proof balance sheets, rather than bubbles that collapse when the market retreats.

And Cango perfectly hits all these marks.

Retracing Cango's "Transformation" Path

If you straighten the timeline, you'll see this isn't a performance of "chasing rallies to buy Bitcoin", but a step-by-step, well-planned corporate transformation blueprint. First divest, then consolidate; first stabilize capacity, then lock in holding rhythms with monthly disclosures, and finally solidify synergy through governance shifts.

On November 6, 2024, Cango announced and completed a cash acquisition of 32 EH/s of operational mining machines (seller: Bitmain-affiliated entity), while disclosing plans to acquire an additional 18 EH/s of operational machines via stock issuance (completed on June 27, 2025). This marked its entry into crypto mining. That month, Cango produced 363.9 BTC, followed by 569.9 BTC in December—neither sold, signaling its earliest "MicroStrategy-style BTC hoarding" phase.

By 2025, governance became another focus for Cango.

A key move came on May 27, as the company divested its mainland legacy business to Ursalpha Digital Limited for ~$351.94M in cash, isolating old-model revenue risks from its new strategy. From then on, capital and disclosures aligned solely with "Bitcoin mining + BTC asset management".

Balance sheet expansion wasn't about "buying spot to spin tales", but directly consolidating "operational miners". On June 27, Cango completed crypto miner asset delivery via stock settlement, adding 18 EH/s hashrate by issuing 146.670925M Class A shares to sellers—with Golden TechGen Limited (GT) becoming a major 19.85% holder (sellers collectively ~41.38%). This "equity-for-capacity" deal sent two signals: (1) machines were mostly already operational in US/global data centers, eliminating "procurement-power up-ramp" delays; (2) immediate capacity consolidation fortified the balance sheet, enabling sustainable "organic BTC" generation for monthly disclosures and inventory strategies.

Post-capacity, operational rhythms emerged. July disclosures showed deployed hashrate hit 50 EH/s, avg. operational hashrate 40.91 EH/s, yielding 650.5 BTC (+45% MoM), with inventory rising to 4,529.7 BTC. Beyond speed, the significance lies in disclosure granularity: updates along "output/deployment/monthly avg./inventory" lines, laying the "capacity-output-inventory" loop bare for investors to "track monthly". Management also confirmed no plans to sell BTC, embedding HODL into official messaging.

Governance shifts progressed alongside capacity and disclosures. On July 23, the company announced secondary transactions and board restructuring: Antalpha founder Moore Xin Jin as Chairman, Paul Yu as CEO, Michael Zhang as CFO, Simon Tang as CIO, etc. This aligned control structure and leadership, creating organizational depth for "capacity-capital-power" synergy, while strategic partnerships with Bitmain/Antalpha expanded industrial coordination in miner supply, asset management, and energy investments—turning external uncertainties into internal resources for an asset-driven firm.

Cango announces secondary acquisition completion and new management team

Pricing Mispricing: Why is Cango Undervalued?

First, consider MicroStrategy—the pioneer of "BTC-hoarding stocks". Its core competency lies in capital-raising prowess, with near-zero organic capacity. Ask around, few know its main business. Cango’s edge is organic capacity and endogenous engine—continuous mining reduces reliance on financing for expansion.

Premium data: MicroStrategy holds 628,791 BTC, mNAV≈1.68x—i.e., the market prices its fundraising ability and "long-term hoarding" sustainability at a 68% premium over BTC NAV.

Applying this to Cango: as of July 2025, disclosures show 4,529.7 BTC inventory, 650.5 BTC monthly output, 50 EH/s deployed hashrate, 40.91 EH/s avg. operational hashrate, with a "no sell" policy. At Bitcoin’s ~$114,165 price on Aug 6, Cango’s BTC holdings are ~$517M; its market cap is ~$833M (share price ~$4.70–$4.73), implying a "BTC coverage premium" of ~1.61x ($833M/$517M)—close to MSTR’s ~1.68x, let alone most "MicroStrategy-style" firms at 3-10x premiums.

Unlike MSTR, Cango has 50 EH/s hashrate. Same "holding premium", but with endogenous cash flow from capacity—the first proof of undervaluation.

Japan’s Metaplanet enjoys tax/structural perks but lacks US market liquidity, facing higher short-selling risks. Cango’s US listing ensures deeper liquidity, higher disclosure frequency, and hashrate consolidation for transparent capital participation.

Versus traditional "pure miners", Cango excels further. Miners are profitable—hence the last crypto IPO wave was miner-led.

But post-cycles, traditional miners remain stuck in "mine-sell-expand", overly exposed to price swings. Cango’s public HODL policy and "equity-settled expansion" pivot it from "selling for cash flow" to "BTC-balance sheet operator", fostering healthier momentum.

Crudely, Cango’s "market cap/EH/s" is ~$16.65M/EH/s (50 EH/s) or ~$20.35M/EH/s (40.91 EH/s avg.). Compare this to North American leaders: Riot’s 35.5 EH/s at $4.1–4.2B cap (~$106–116M/EH/s); Marathon’s ~54 EH/s at $5.7–5.9B (~$106–109M/EH/s). Same sector, same metrics—Cango’s unit hashrate is priced at ~1/5–1/7 of peers, signaling undervaluation.

Further, machine efficiency: Cango’s fleet averages ~21.6 J/TH, with Q4/2024 output hitting 17.81 BTC/EH/s—90% Bitmain hydro-cooled. This means competitive "electricity-to-BTC" efficiency. Coupled with geographic diversity (US, East Africa, Oman, Paraguay), Cango can further reduce per-BTC costs in bear markets, widening gaps with peers.

Cango’s Next Moves

True valuation isn’t about buzzwords, but thickening and stabilizing the balance sheet.

From this "first principle", Cango treats Bitcoin as strategic reserves: management’s "no sell" stance, paired with monthly capacity/output/inventory disclosures, institutionalizes HODL beyond rhetoric.

Long-termism isn’t about slogans, but letting markets verify monthly—investors see not just price swings, but growing inventory, steady operations, and governance backing it all. This "process-driven uncertainty, balance sheet certainty" approach is key to cycle-proofing.

Mining’s iron law: electricity is #1. Those securing low-cost/renewable power across stable, diverse regions will achieve lower per-BTC costs in bear markets. Cango’s new board/management—with mining/finance/energy backgrounds—can close the "power-capacity-holdings-financing" loop.

Next, Cango may deepen "power-side" adjustments: long-term US power agreements, Middle East surplus/renewables, Latin America/Africa cost advantages, while leveraging expertise to offer HPC infrastructure for AI firms—front-end hashrate, back-end balance sheet growth, powered by power contracts, efficiency, and capital tools.

Energy-mining integration isn’t overnight, but project-by-project, turning "low rates + high uptime + replicable ops" into scalable capabilities—bear-market resilience and bull-market expansion leverage.

Ultimately, Cango’s story isn’t "chasing Bitcoin", but "using organic capacity to make BTC the balance sheet foundation": miners for endogenous BTC, disclosures for trust, HODL as corporate doctrine.

This is how Cango fulfills its "Eastern MicroStrategy" narrative.