Cango's Strategic Equity Raise and Voting Control Shift: Assessing Long-Term Governance Influence and Capital Efficiency in Bitcoin-Mining AI Integrators

Cango Inc.'s recent $10.5 million equity raise from Enduring Wealth Capital Limited (EWCL) marks a pivotal moment in the company's evolution as a Bitcoin-mining AI integrator. By issuing 7 million Class B ordinary shares at $1.50 per share, Cango has not only secured critical capital but also reshaped its corporate governance structure, with EWCL's voting power surging from 36.68% to 49.61% of the total voting shares outstanding. This shift raises important questions about the balance of power within the firm and its implications for long-term strategic direction.

Governance Implications: Centralization and Strategic Alignment

The transaction underscores a deliberate move toward consolidating voting control under a major shareholder. EWCL's increased stake-from 2.81% to 4.69% of total shares grants it a near-majority voting bloc, a structure that could streamline decision-making but also concentrate influence. In the context of Bitcoin-mining AI integrators, where operational agility and capital allocation efficiency are paramount, such governance shifts can either accelerate innovation or introduce risks of misalignment with broader market trends.

Comparative analysis with peers like Hut 8 Corp. and IREN reveals divergent governance models. Hut 8, for instance, has adopted a vertically integrated energy infrastructure platform, leveraging its power assets to diversify into AI and HPC services. This approach emphasizes decentralized revenue streams and operational resilience, contrasting with Cango's shareholder-centric strategy. Meanwhile, IREN's partnership with Microsoft and GPU cloud deals highlight a governance model prioritizing external collaboration over internal consolidation. Cango's path, by contrast, suggests a focus on aligning with a single strategic partner to drive execution speed, though it may limit flexibility in responding to market volatility.

Capital Efficiency: Strategic Use of Funds and Industry Benchmarks

Cango's capital allocation strategy-directing proceeds toward hashrate efficiency improvements, equipment upgrades, and AI/energy infrastructure-aligns with broader industry trends. Bitcoin miners in 2025 are increasingly repurposing existing facilities for AI workloads, leveraging power and cooling infrastructure to capture higher-margin revenue streams. For example, CoreWeave and Bitfarms have demonstrated that AI/HPC services can generate 3–5x higher revenue per megawatt compared to Bitcoin mining alone according to industry analysis. Cango's pivot mirrors this logic, aiming to diversify away from Bitcoin's price volatility while optimizing asset utilization.

However, the company's capital efficiency metrics must be scrutinized against industry benchmarks. Modern ASICs operate at under 30 joules per terahash, a threshold Cango must meet to remain competitive. Additionally, transitioning to AI infrastructure requires upfront investments in liquid cooling and connectivity, which could strain short-term liquidity. CleanSpark's hybrid approach-selling portions of its Bitcoin reserves to fund operations while maintaining a strategic reserve-offers a cautionary example of balancing capital efficiency with operational continuity. Cango's reliance on a single shareholder for funding may limit its ability to hedge against such risks, particularly if EWCL's priorities diverge from broader market demands.

The Bitcoin-mining sector's evolution in 2025 is defined by two forces: the decline of block rewards and the rise of AI/HPC demand. Investors are now prioritizing firms with robust treasury strategies, ESG alignment, and diversified revenue models. Cango's equity raise, while strategically sound in securing immediate capital, must be evaluated against its long-term governance structure. A near-majority shareholder could expedite AI infrastructure deployment but may also stifle shareholder dissent or innovation-driven initiatives.

In contrast, companies like Core Scientific have secured multi-year AI/HPC contracts, providing stable cash flows without over-reliance on a single investor. This model emphasizes capital efficiency through contractual certainty, a metric Cango's current strategy lacks. Furthermore, the global hash rate's peak of 943 EH/s in May 2025 highlights the importance of operational scale. Cango's ability to scale its AI infrastructure while maintaining governance flexibility will be critical to outperforming peers.

Conclusion

Cango's equity raise and voting control shift represent a calculated bet on centralized governance and strategic capital deployment. While the move aligns with industry trends toward AI integration, it also introduces governance risks that could hinder long-term adaptability. Investors must weigh the benefits of streamlined decision-making against the potential for misalignment with market dynamics. As the sector continues to pivot toward AI and HPC, Cango's success will hinge on its ability to balance governance efficiency with operational resilience-a challenge that will define its trajectory in the coming years.