Investing.com - H.C. Wainwright has reiterated its Buy rating and $3.00 price target on Cango Inc. (NYSE:CANG) following the company’s announcement of a significant bitcoin sale. This target represents over 220% upside from the current price of $0.93, with the stock trading near its 52-week low of $0.88. InvestingPro data shows the stock appears undervalued based on Fair Value analysis.
Cango sold approximately 60% of its bitcoin holdings, raising $305 million at an implied bitcoin price of $68,500. Based on the 7,475 bitcoin held as of January 30, the company now retains approximately 3,024 bitcoin worth roughly $213 million at current prices.
The bitcoin sale coincided with a letter to shareholders from the CEO, highlighting Cango’s pivot toward High-Performance Computing (HPC). The company indicated the sale would strengthen its balance sheet and provide liquidity for pursuing its HPC objectives. This cash injection comes at a critical time, as InvestingPro data reveals the company has been quickly burning through cash with a negative free cash flow yield of -80%.
As of September 30, Cango held $405 million in related-party, long-term debt, primarily owed to Bitmain for 50Eh/s in mining rigs. Throughout its bitcoin mining operations, Cango has typically leased Bitmain facilities to deliver its mining hash. This significant debt burden, highlighted as an InvestingPro Tip, represents a substantial portion of the company’s $317 million market capitalization.
In August 2023, Cango purchased a fully operational 50MW facility in Georgia, USA, for approximately $20 million, marking a significant investment in owned infrastructure. With the RSI suggesting the stock is currently in oversold territory, investors may find value in CANG’s strategic repositioning despite recent price volatility. Discover 13 more key insights and a comprehensive analysis in the Pro Research Report, available exclusively on InvestingPro.
In other recent news, Cango Inc. has made significant financial moves by selling 4,451 bitcoin for approximately $305 million in USDT. The proceeds from this sale were used to partially repay a bitcoin-collateralized loan, which aims to strengthen Cango’s balance sheet and reduce financial leverage as the company shifts focus towards artificial intelligence infrastructure. The company reported a decrease in bitcoin production for January 2026, with 496.35 bitcoin mined, down from 569 in December 2025. This drop in production was attributed to extreme weather conditions affecting their operations.
In December 2025, Cango had produced 569 bitcoin, an increase from November’s 546.7, thanks to favorable network difficulty adjustments. Additionally, Cango secured a $10.5 million investment from Enduring Wealth Capital Limited (EWCL), which will be used to accelerate growth initiatives. The investment involves the purchase of 7 million Class B ordinary shares at $1.50 per share, increasing EWCL’s ownership and voting power within the company. These developments highlight Cango’s strategic financial maneuvers and operational adjustments in the bitcoin mining sector.
