Cango to Sell Chinese Assets for $352M, Betting on Bitcoin Mining Growth

Cango Inc., the 14th largest publicly traded bitcoin miner by market cap, has signed definitive agreements to sell its China assets to Ursalpha Digital Limited for $351.94 million, allowing it to focus on global bitcoin mining.

Cango Ditches China Operations to Expand Mining Ambitions

The all-cash Cango (NYSE: CANG) transaction 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, is in response to a March 14 offer from Enduring Wealth Capital Limited (EWCL) to acquire control of the company and sell its China operations.

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 completed, Cango will apply to the China Securities Regulatory Commission (CSRC) to terminate its “China Concept Stock” status, which could be revoked if the status remains unchanged for three months or if EWCL’s planned secondary acquisition of 10 million Class B shares from the co-founders fails to proceed.

On paper, Cango's financial position looks solid, with a market cap of $415 million, a current multiple of 1.88, and a gross margin of 55%. Its shares have increased 195% over the past year, and trade at a P/E of 11.89. The company also renegotiated the terms of its Bitcoin mining equipment acquisition with Golden Techgen Limited, 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 deadline to complete the acquisition of mining assets, and inclusion in the Bitwise Bitcoin Standard Corporations ETF. A $30 million share buyback program further demonstrates efforts to increase shareholder value. The deal highlights Cango’s strategic pivot from its traditional automotive operations to capitalizing on the growing demand for cryptocurrency.

Source: cryptonews.net