With its market capitalization at the 14th largest publicly listed Bitcoin Miner, Cango Inc. has signed a decisive agreement to sell its China-based business to Ursalpha Digital Limited for $351.94 million, focusing on global Bitcoin mining.
Cango fires up mining ambitions by running PRC operations
The Cango (NYSE: CANG) Cash agreement includes an initial payment of $220.64 million upon closing, with the remaining $141.3 million taxes fulfilling their tax obligations and reducing credit risk exposures associated with entities on sale. The transaction, approved by Cango’s board of directors and special committee, corresponds to the permanent March 14th proposal by Wealth Capital Limited (EWCL) to gain control of the company and sell its PRC business.
Under the closure terms, shareholder approval and completion of internal restructuring would require the separation of Cango’s Chinese operations, including automotive transactions, from the international Bitcoin mining and automotive businesses. If confirmed, CANGO will petition the China Securities and Regulation Authority (CSRC) to terminate its “China Concept Stock” status. This is subject to the reversal clause if the status does not change within three months or if the EWCL proposed secondary acquisition of 10 million shares is unsuccessful from the co-founder.
On paper, Cango’s financial health remains strong, with a market capitalization of $415 million, current ratio of 1.88 and a 55% gross profit margin. Its stock has skyrocketed 195% over the past year, trading at a P/E ratio of 11.89. The company also renegotiated terms with Golden Techgen Limited for the acquisition of the Bitcoin mining machine, initially resolved via share issuance, avoiding defaults after default.
Recent developments include a 12% increase in Bitcoin production to 530.1 coins in March 2025, an extension of deadline to close the acquisition of mining assets, and inclusion in the Bitwise Bitcoin Standard Corporations ETF. The $30 million share buyback programme further demonstrates efforts to increase shareholder value. The deal highlights the strategic pivot from Cango’s legacy car operations and leverages the demand for cryptocurrency.
