Overview
H.C. Wainwright has reiterated a Buy rating and a $3.00 price target on Cango Inc. (NYSE: CANG) following the company's recent disposal of a large portion of its bitcoin reserves. The stated target implies more than 220% upside from Cango's then-current share price of $0.93, with the stock trading close to its 52-week low of $0.88. Independent fair-value analysis cited in company materials indicates the shares appear undervalued.
Details of the bitcoin sale
Cango sold approximately 60% of its bitcoin holdings, liquidating 4,451 bitcoin for roughly $305 million in USDT at an implied bitcoin price of $68,500. The company reported that, based on a total holding of 7,475 bitcoin as of January 30, it now retains about 3,024 bitcoin, which are valued at roughly $213 million at prevailing prices.
Use of proceeds and strategic signaling
The proceeds from the bitcoin sale were deployed in part to repay a bitcoin-collateralized loan, a step the company described as intended to strengthen its balance sheet and reduce leverage. The divestiture coincided with a letter to shareholders in which management emphasized a strategic pivot toward High-Performance Computing (HPC). Cango indicated the cash raised would provide liquidity to pursue its stated HPC objectives.
Cash flow and balance-sheet context
Company disclosures highlight a rapid pace of cash consumption: a negative free cash flow yield of -80% was reported. At the same time, as of September 30, Cango carried $405 million in related-party, long-term debt, primarily owed to Bitmain in connection with 50Eh/s of mining rigs. Historically, Cango has generally leased Bitmain facilities to deliver its mining hash, and that related-party debt represents a very large share of the firm's reported $317 million market capitalization.
Operational and financing developments
The company has also made investments in owned infrastructure. In August 2023, Cango purchased a fully operational 50MW facility in Georgia, USA, for approximately $20 million. More recently, Cango disclosed operational production figures: bitcoin production fell to 496.35 bitcoin in January 2026, down from 569 in December 2025 — a decline attributed to extreme weather conditions affecting operations. December 2025 production of 569 bitcoin was itself an increase from November's 546.7 bitcoin, a change the company linked to favorable adjustments in network difficulty.
In addition to the bitcoin sale and production changes, Cango secured a $10.5 million equity investment from Enduring Wealth Capital Limited (EWCL). EWCL purchased 7 million Class B ordinary shares at $1.50 per share, a transaction that increases EWCL's ownership stake and voting power in the company.
Market technicals and investor considerations
Technical indicators cited by analysts suggest the stock is in oversold territory according to the relative strength index (RSI). Observers note that the combination of a substantial cash infusion from the bitcoin sale and the company's strategic shift toward HPC provide potential catalysts, but the firm remains exposed to heavy cash burn and meaningful related-party indebtedness.
Further detailed analyst notes and expanded insight are compiled in a proprietary research report available to subscribers.