Greenridge Capital Initiates Cango Coverage With Buy Rating on Bitcoin Mining Strength

Core Viewpoint - Greenridge Capital initiated coverage on Cango Inc. with a Buy rating and a $4.00 price target, highlighting the company's undervaluation and overlooked potential in Bitcoin mining and high-performance computing [1] Group 1: Company Position and Assets - Cango holds a market-leading position in Bitcoin mining, owning mining equipment that ranks it among the largest global miners [2] - The company possesses over $600 million in Bitcoin and has recently acquired its first infrastructure facility, along with two ongoing energy generation projects [2] - Cango has sufficient cash and equity resources to pursue further strategic expansion [2] Group 2: Future Expectations and Valuation - Greenridge Capital anticipates that management will provide additional details on expansion initiatives in the coming months, which could act as a catalyst for a valuation re-rating [3] - The $4.00 price target is based on a 7x EV-to-adjusted EBITDA multiple applied to a 2026 adjusted EBITDA estimate of $335.4 million and a 15x price-to-earnings multiple applied to a projected 2026 diluted EPS of $0.34, both of which are below industry peer multiples [3]