Cango Sells Its China Operations for $351.94 Million, Pivoting Towards Cryptocurrency 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.

Shanghai-based Cango has signed definitive agreements to sell its China operations to Ursalpha Digital Limited, a British Virgin Islands-registered entity, for $351.94 million in cash. The transaction will also be subject to certain tax obligations and credit risk reductions, potentially reducing the final balance, according to a press release on Thursday.

The deal follows a non-binding proposal from Enduring Wealth Capital Limited (EWCL) in March, which sought to gain control of Cango and facilitate the sale of its PRC business to a third party.

The sale is still pending shareholder approval and an internal restructuring that will separate Cango’s China operations from its offshore businesses, including Bitcoin (BTC) mining and automotive trading outside China. If the deal is completed and Cango successfully deregisters as a "China Concept Stock" under Chinese regulatory oversight, EWCL will make an initial payment of $210.64 million.

The buyer also has the right to cancel the transaction 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 has already begun. 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 disposal of the PRC business required amendments to this agreement, with further revisions expected.

This transaction signals Cango’s complete transition into the crypto sector, potentially making it a proxy for some of the largest Bitcoin mining entities.