Cango Sells China Operations for $351.94 Million, Focuses on Crypto Mining
shanghai-based Cango has inked agreements to sell its China operations for $351.94 million in cash. This move marks a significant shift towards cryptocurrency mining. Ursalpha Digital Limited, a company registered in the British Virgin Islands, will take over Cango’s PRC business.
The deal involves an initial payment of $210.64 million at closing.The rest depends on tax obligations and reduced credit risks, as stated in a press release.This follows a non-binding proposal from Enduring Wealth Capital Limited in March, aiming to control Cango and facilitate the sale of its PRC business.
Shareholder approval and internal restructuring are pending. The restructuring will separate Cango’s China operations from its offshore businesses, including Bitcoin (BTC) mining and automotive trading outside China. If successful, Cango plans to deregister as a “China Concept Stock” under chinese regulations.
Though, the buyer can 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 is already in motion. The company agreed to buy Bitcoin mining rigs with a total hashrate of 18 EH/s from Golden TechGen Limited. The PRC business disposal required changes to this agreement, with more revisions expected.
This transaction signals Cango’s full transition into the crypto sector, positioning it as a potential proxy for major Bitcoin mining entities.
