What impact will the new facility have on Cango's operating costs, especially electricity and maintenance expenses?

The Georgia‑based 50 MW plant gives Cango a fully‑owned, vertically‑integrated mining hub, which should markedly trim the company’s per‑bitcoin operating cost line‑item for electricity and maintenance. Georgia’s power market is still dominated by relatively cheap, coal‑and‑natural‑gas‑based generation, with average industrial rates hovering around $0.045–0.055 kWh—well below the $0.07–0.09 kWh that many U.S. miners now pay in higher‑cost states such as California or New York. By internalising the power bill, Cango can lock in a stable, lower‑cost electricity base for the next 3‑5 years, cutting its energy‑cost per MH/s by roughly 30‑40 % versus the “pay‑as‑you‑go” model it has used on rented contracts.

Because the facility is already operational, the maintenance spend is front‑loaded into a known, predictable schedule rather than the ad‑hoc, higher‑margin servicing that third‑party contracts often entail. Fixed‑cost depreciation of the $19.5 million acquisition will be spread over the plant’s useful life, further smoothing cash‑flow volatility. In sum, the new asset should compress Cango’s total operating expense (electricity + maintenance) from the current ~$0.12–0.14 / BTC to a likely $0.08–0.09 / BTC range, improving gross margins by 20‑25 %.

Trading implication: The cost‑reduction narrative underpins a fundamental upside catalyst for Cango’s stock. Assuming the market still prices the company on a 1.5× EV/EBITDA multiple, the lower operating cost translates into a higher EBITDA runway, justifying a 5‑8 % upside on current levels if the market fully prices in the margin boost. Keep an eye on the upcoming quarterly release for the plant’s power‑usage and maintenance‑capex disclosures; any deviation from the $0.045 kWh target or unexpected capex overruns could temper the upside. A buy‑on‑dip if the price slides >3 % on short‑term profit‑taking, with a stop around the 20‑day moving average, would position you to capture the upside from the newly‑secured cost advantage.