Cango Inc/KY (CANG) Stock Forecast & Price Target

Cango Inc has demonstrated significant operational improvements in its bitcoin mining segment, reporting a 61% revenue increase in 3Q25 to $224.6 million compared to $139.8 million in 2Q25, driven by enhanced efficiency and a rising hashrate. The company's successful management of mining costs, with a 2.5% reduction in cash costs to $81,072 per BTC, and strategic investments in upgrading its mining fleet further highlight its commitment to optimizing operations. Cango's key partnership with Bitmain has facilitated its rapid transition to a major player in the bitcoin mining space, achieving an operational efficiency rate of 87% with a deployed hashrate of 43.7 Eh/s as of August.

Cango Inc.'s stock outlook is negatively affected by significant downward revisions to revenue estimates for both FY25 and FY26, with projections lowered to $631.4 million and $690.4 million, respectively, suggesting a decrease in expected performance as the bitcoin mining sector faces a challenging environment. The company's valuation multiple is notably low, with a target of just 1.6 times the FY26 revenue estimate, far below the industry average and indicative of underlying financial distress. Additionally, the current mining economics have turned unfavorable, as the cost to mine exceeds the prevailing spot price, complicating profitability and further contributing to a deteriorating financial outlook for the company.