Cango exits China in $351.9m deal, pivots to Bitcoin mining

Shanghai-based Cango has signed definitive agreements to sell its China operations for $351.94 million in cash, marking a strategic shift towards cryptocurrency mining.

Ursalpha Digital Limited, a British Virgin Islands-registered entity, will acquire Cango’s PRC business. The transaction includes an initial $210.64 million payment upon closing, with the remaining balance contingent on tax obligations and credit risk reductions, according to a press release. 

The deal follows a non-binding proposal from Enduring Wealth Capital Limited in March, which sought control of Cango while facilitating the PRC business sale.

The sale is pending shareholder approval and an internal restructuring that separates Cango’s China operations from its offshore businesses, including Bitcoin (BTC) mining and automotive trading outside China. 

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

Cango’s crypto pivot

Cango’s pivot to cryptocurrency mining is already underway. The company 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 PRC business disposal necessitated amendments to this agreement, with further revisions expected.

The transaction signals Cango’s full transition into the crypto sector, positioning itself as a potential proxy for major Bitcoin mining entities.