Hello, and welcome to the CanGo Inc. First Quarter 2026 Earnings Conference Call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded. I would now like to turn the conference over to Mr. Paul Yu, Chief Executive Officer. Please go ahead.
Good morning, everyone. And thank you for joining Kangol's first quarter 2026 earnings call. First, I will summarize our key financials and operational performance for the quarter. The first quarter of 2026 was characterized by industry-wide adjustments. And our results reflect this macro high winds alongside our ongoing efforts to manage change our strategic transition. During Q1, we generated total revenue of approximately $102 million, primarily driven by revenue from our Bitcoin mining business, and a net loss from continuing operations of $261.1 million, primarily due to non-cash impairment charges on Bitcoin mining machines and loss from receivable for Bitcoin collateral, both resulting from the decline in Bitcoin market price. At the end of the quarter, we held 1,025.7 Bitcoin, and we reduced our long-term debt to $30.6 million. dollars. As of March 31st, 2026, Kangol's total operational hash rate was 37.01 at 27.9 point no model per margin resilience. Over Q1, we mined 1,200 and operational efficient for additional context regarding our strategy, regarding our mining business, our immediate priority, ongoing fleet upgrade, beginning in March, modular high development, operational model. This framework is evaluated. You have taken a disciplined approach to improve our as we look aiming to leverage our...
We'll now begin the question and on to the session. To ask a question, you may press star then one on your touchtone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press star then two. Your first question comes from Ping Yui from Cidic Securities. Please go ahead.
Morning, and thank you, for taking my question. I'm Ping Yui from Cidic Securities, and my first question is, the company's cash cost per coin declined in the first quarter compared with the the first quarter of last year, and management also mentioned further optimization in April. What were the main drivers behind the cost reduction? Is there still room for further cost improvement going forward? And also my second question is our management team mentioned that the 26th strategy is efficiency over scale, and the April total operating hash rate was 31.55 extra hash per second, including 11.50 extra hash per second of the least hash rate. Will the hash rate continue to decline over the next few months? Could you explain in more detail how the listing model works and its specific impact on the financial statements?
The reduction was mainly driven by two factors. We actively phased out part of our higher energy consumption S-19 series mining machines and gradually replaced them with more energy efficient S-21 series models. Second, we continued to migrate with lower power costs, including developing next generation miners, mining sites, our ongoing fleet of our hosting contracts inspire, we will try hosting arrangements.
And I'll take your second question with regards to the hashrate. Having a hard hashrate target and our decent model.
Once again, to ask a question, please press star 1. Your next question comes from Marco Zheng from Geelong Huey Research. Please go ahead.
Hi, this is Marco from Geelong Huey Research. Thanks for taking my question. I have three questions here. My first question is regarding your Bitcoin business. You sold 2,000 Bitcoin in Q1 and currently holds approximately 1,057 Bitcoins. Will the company continue to sell Bitcoin going forward? Has the company's long-term holding strategy changed?
From mine and hold to a more dynamic level of market volatility on liquidity and balance. Q1 was mentioned on Bitcoin. Our treasury decisions will align with our overall capital.
Got it. So we understand that the company's AI business will be carried out through EchoHash. Could you share an update on the LN pilot mentioned previously? are there any specific commercialization milestones for 2026 and when could it start contributing revenue revenue yeah so the LSI is currently only fully self-holding got it and how about the capex so how much capex will be required for the echo hash pilot and future expansion and how do you plan to fund it?
Got it.
Thanks. Yeah, I have no more questions here.
Thank you. There are no further questions at this time. I'll now hand the conference back to management for any closing remarks.
Thank you.
Thank you. That does conclude our conference for today. Thank you for attending today's presentation. You may now disconnect.