Cango Receives Buy Rating, Upbeat on its Asset-light Mining Model and AI Potential

Core Viewpoint - Greenridge Capital has initiated coverage on Cango Inc. with a buy rating and a target price of US$4.00, indicating that the company is undervalued in the market due to its leading position in Bitcoin mining and asset-light model for high-performance computing [1] Group 1: Financial Position and Valuation - Cango is trading below the value of its assets, which include over US$600 million in Bitcoin held under a strict HODL strategy, a 50 EH/s globally distributed mining portfolio, and a 50MW data center in Georgia [1] - Greenridge Capital's US$4.00 price target is based on a blended valuation approach using an EV/Adjusted EBITDA multiple of 7x applied to a 2026 adjusted EBITDA estimate of US$335.4 million, and a P/E multiple of 15x applied to a 2026 diluted EPS estimate of US$0.34 [3] - The valuation does not yet account for Cango's developing energy infrastructure projects, which could unlock significant future value [3] Group 2: Strategic Initiatives - Cango's strategy to diversify revenue includes securing control over its own power supply, which is crucial for future AI data center or Bitcoin mining operations [2] - The "Energy + HPC" plan targets expansion into flexible energy and data infrastructure projects with higher margin opportunities, supported by pilot projects in Oman and Indonesia [2] Group 3: Company Overview - Cango Inc. is primarily engaged in Bitcoin mining, with operations across North America, the Middle East, South America, and East Africa, and also operates an online international used car export business [4]