Hong Kong, June 10, 2025 /PRNewswire/ — Cango Inc. (NYSE: CANG), a company rapidly growing its presence in the digital currency mining sector, announced today the successful completion of a strategic restructuring initiative. This transformation, encompassing several recent transactions and finalized agreements, positions Cango as a well-funded leader within the global digital currency mining industry.
Key Transformation Highlights and Timeline:
- May 27, 2025: Cango completed the divestiture of its mainland China-based operations. Furthermore, the company announced adjustments to its board of directors and executive leadership, including the appointment of co-founder and CEO, Jiayuan Lin, as interim CFO.
- June 2, 2025: Cango revealed a definitive agreement stipulating that the company’s founders, along with their affiliated parties, will sell 10 million Class B ordinary shares to Enduring Wealth Capital Limited (“EWCL”) for a total investment of $70 million USD, $15 million USD of which is conditional.
- June 4, 2025: Cango formally agreed to a third amendment to acquire an additional 18 EH/s of mining capacity. This acquisition will be made through the issuance of Class A ordinary shares to a group of sellers, primarily led by Golden TechGen Limited (“GT”), in a series of share-settled deals.
Xiaojun Zhang, co-founder and executive chairman at Cango, stated, “The exit from our legacy mainland China business is a watershed moment for Cango. This strategic pivot, towards a focused global digital currency mining enterprise, provides us with the agility, capital, and clear objectives to take the lead in the next evolution of digital finance. Bolstered by a rejuvenated shareholder base and seasoned governance, we’re ready to capitalize on the immense opportunities within the worldwide digital currency arena.”
Divestiture of Mainland China Operations and Leadership Transition
On May 27, 2025, Cango finalized the sale of all its operational entities within mainland China to Ursalpha Digital Limited, receiving approximately $351.94 million USD in cash. This transaction, endorsed by shareholders on May 16, 2025, enables Cango to fully allocate its financial and operational resources to promising growth prospects located outside of mainland China. Following the completion of this sale, Cango intends to seek deregistration as a “China Concept Stock” with the China Securities Regulatory Commission (CSRC), thereby accelerating its entry into digital currency mining ventures across key markets in North America, the Middle East, South America, and East Africa.
Concurrently, Cango announced a series of changes to its board and executive leadership team. These changes include the resignation of CFO Yongyi Zhang and the appointment of two independent directors with extensive expertise in FinTech, Web 3.0, AI, and international capital markets. Jiayuan Lin, co-founder and CEO of the company, has been appointed as interim CFO.
New Shareholder and Governance Structure
On June 2, 2025, Cango publicly declared that the company’s founders and their related affiliates would sell 10 million Class B ordinary shares to Enduring Wealth Capital Limited (“EWCL”) in exchange for a total purchase price of $70 million USD, with $15 million USD of this investment subject to certain conditions. As part of the arrangement, EWCL will secure significant voting control (dependent on various closing conditions). The founders will convert their remaining Class B high-vote shares into Class A single-vote shares. Additional governance and board restructuring will take place alongside closing.
Following the completion of the Share-Settled Transactions detailed below, EWCL is anticipated to hold roughly 2.82% of Cango’s outstanding shares and 36.74% of the total voting power amongst all outstanding shares of the company. Collectively, the Founders will retain 18.54% of the total outstanding shares of the Company and 12.07% of the total voting power of the outstanding shares of the Company.
Finalized Share-Settled Acquisition Agreement
On June 4, 2025, Cango entered into a third amendment to acquire 18 EH/s in mining capacity. This acquisition will occur through the issuing of Class A ordinary shares to the sellers, primarily led by Golden TechGen Limited (“GT”), as part of a series of “Share-Settled Transactions.” Once finalized, this acquisition will increase the Company’s total mining capacity to 50 EH/s. Cango will issue 146.7 million Class A ordinary shares, which is equivalent to 73 million ADS, upon closing. These shares will be subject to a six-month lock-up period, mitigating any potential short-term market volatility.
An additional 97.8 million bonus shares may be issued if certain post-closing price thresholds are achieved. Also, a final $7 million USD has been set aside for the mainland China business disposal, which is primarily reserved for legal and financial advisory fees, and taxes, representing a very low risk of additional equity issuance.
Following the closure of the transaction, sellers will collectively hold approximately 41.38% of Cango’s total shares, prior to the issuance of any bonus or adjustment shares. This creates a solid, unified shareholder base focused on Cango’s future trajectory within the digital currency mining space. GT will possess nearly 18.79% of Cango’s total outstanding shares and 12.23% of the total voting rights. Critically, control of GT was recently transferred, with three new shareholders, Ning Wang, Youngil Kim and Wye Sheng Kong, each assuming one third of GT’s total voting power.
Jiayuan Lin, Co-founder, CEO, and interim CFO of Cango, remarked, “These carefully chosen transactions and the addition of our new shareholders will enable us to achieve unparalleled scale and efficiency in digital currency mining. We have ongoing expansion initiatives already underway within strategically vital areas, and we are still committed to driving technological innovation and creating value for our stakeholders. With the disposal of our mainland China business completed, effective leadership now in place, and a rock-solid foundation for growth within the digital asset infrastructure arena, Cango is ideally positioned to emerge as a dominant force within the global digital currency mining ecosystem.”
About Cango Inc.
Cango Inc. (NYSE: CANG) primarily operates within the digital currency mining sector, strategically deploying operations across North America, the Middle East, South America, and East Africa. The company entered the crypto asset industry in November 2024, motivated by advancements within blockchain technology, the escalating adoption of digital assets, and its own commitment to diversifying its overall business portfolio. Additionally, Cango continues to manage an international online used car export operation through AutoCango.com, facilitating global access to high-quality automobile inventories originating from mainland China. For more information, please visit: www.cangoonline.com.
Media Contact
Juliet Ye
Cango Inc.
Tel: +86 21 3183 5088 ext.5581
Email: [email protected]
SOURCE Cango Inc.