Cango Inc., the 14th largest publicly traded bitcoin miner by market cap, has completed agreements to sell its China assets to Ursalpha Digital Limited for $351.94 million, allowing it to focus on global bitcoin mining.
Cango Divests China Operations to Advance Mining Ambitions
Cango’s (NYSE: CANG) all-cash deal includes an initial payment of $210.64 million at closing, with the remaining $141.3 million contingent on Cango satisfying tax obligations and mitigating the credit risk associated with the assets sold. The agreement, approved by Cango’s board of directors and a special committee, was in response to Enduring Wealth Capital Limited’s (EWCL) March 14 offer to acquire control of the company and sell its China business.
The closing conditions of the deal require shareholder approval and the completion of an internal restructuring to separate Cango’s China operations, including auto trading, from its international bitcoin mining and auto businesses. If these steps are completed, Cango will apply to the China Securities Regulatory Commission (CSRC) to terminate its “China Concept Stock” status, with the status to be revoked if it remains the same for three months or if EWCL’s proposed secondary acquisition of 10 million Class B shares from the co-founders fails to materialize.
On paper, Cango’s financial position remains strong, with a market cap of $415 million, a current multiple of 1.88, and a gross margin of 55%. The company’s shares have risen 195% in the last year, trading at a P/E of 11.89. The company also renegotiated the terms of its Bitcoin mining equipment acquisition with Golden Techgen Limited, which was originally agreed to through a share issue to avoid defaults after the sale.
Recent developments include a 12% monthly increase in Bitcoin production to 530.1 coins in March 2025, an extension of the closing date for the acquisition of mining assets, and inclusion in the Bitwise Bitcoin Standard Corporations ETF. A $30 million share buyback program further highlights efforts to increase shareholder value. The deal demonstrates Cango’s strategic pivot from its traditional automotive business to capitalizing on opportunities arising from the growing demand for cryptocurrency.
Source: cryptonews.net
