CANG Stock Forecast & Price Target

Cango Inc has established itself as one of the largest publicly traded bitcoin miners with 50 EH/s deployed and an impressive operating efficiency of 87% as of the end of August, representing a notable increase from 40.9 EH/s at the end of July. The company's strong partnership with Bitmain has been a crucial driving force behind its rapid ascent in the bitcoin mining sector. Furthermore, Cango's strategy to pursue high-performance computing and acquire additional facilities is expected to create a vertically integrated operation that enhances operational efficiency and reduces costs in the long run.

Cango Inc's outlook is negatively impacted by its revenue estimates, with projections for 2025 and 2026 being revised downward from $667.7 million to $631.4 million and from $767.1 million to $690.4 million, respectively. The company's valuation is further questioned as it anticipates a target representing only 2x of its FY26 revenue estimate, significantly lower than its competitors of similar scale. Additionally, Cango's equity faces risks from regulatory vulnerabilities under the Holding Foreign Companies Accountable Act (HFCAA), which may lead to significant price volatility due to operational, dilution, or market shocks.