Cango Sells China Operations for $351.94M to Focus on Cryptocurrency Mining

Cango, a Shanghai-based company, has announced a significant strategic shift by selling its operations in China for $351.94 million in cash. This move is part of a broader plan to pivot towards cryptocurrency mining. The buyer, Ursalpha Digital Limited, a British Virgin Islands-registered entity, will acquire Cango’s operations in the People's Republic of China (PRC). The transaction involves an initial payment of $210.64 million upon closing, with the remaining balance dependent on tax obligations and credit risk reductions.

The deal comes after a non-binding proposal from Enduring Wealth Capital Limited in March, which aimed to take control of Cango while facilitating the sale of its PRC business. The sale is subject to shareholder approval and an internal restructuring that will separate Cango’s China operations from its offshore businesses, including Bitcoin mining and automotive trading outside China.

If the sale is completed, Cango plans to deregister as a “China Concept Stock” under Chinese regulatory oversight. However, the buyer has the right to reverse the deal if China’s securities regulators reject the deregistration or if Enduring Wealth Capital Limited fails to finalize a separate stock acquisition agreement with Cango’s co-founders.

Cango’s transition into the cryptocurrency sector is already in progress. The company has previously agreed to acquire Bitcoin mining rigs with a total hashrate of 18 EH/s in a share-settled deal with Golden TechGen Limited. The disposal of the PRC business has necessitated amendments to this agreement, with further revisions expected. This transaction underscores Cango’s full transition into the crypto sector, positioning itself as a potential proxy for major Bitcoin mining entities.