Cango Inc. Announces New Equity Investment from EWCL

Rhea-AI Summary

Cango (NYSE: CANG) announced that Enduring Wealth Capital Limited (EWCL), the holder of Class B shares with ~36.68% voting power, agreed to subscribe for 7,000,000 Class B ordinary shares at $1.50 per share for an aggregate $10.5 million purchase under an Investment Agreement dated December 29, 2025.

Upon closing (expected January 2026, subject to NYSE approval and customary conditions), EWCL's equity stake is expected to rise from ~2.81% to ~4.69% of outstanding shares and its voting power from ~36.68% to ~49.61%.

There is no assurance the closing conditions will be satisfied or the Proposed Investment will complete.

Positive

• Cash injection of $10.5M into the company
• Issuance of 7,000,000 Class B shares at $1.50
• EWCL voting power rising to 49.61%

Negative

• Concentration of control: EWCL voting power near 50%
• Transaction requires NYSE approval and may not close
• Existing shareholders diluted: equity stake shift to 4.69% for EWCL

Key Figures

New Class B shares 7,000,000 shares Subscribed by EWCL under Investment Agreement dated December 29, 2025

Aggregate purchase price US$10,500,000 Cash subscription by EWCL for new Class B ordinary shares

Subscription price US$1.5 per share Implied per-share price for 7,000,000 new Class B ordinary shares

EWCL ownership before 2.81% of shares Pre-transaction shareholding of total outstanding shares

EWCL ownership after 4.69% of shares Expected post-closing shareholding of total outstanding shares

Voting power before 36.68% of votes EWCL voting power as sole Class B shareholder pre-investment

Voting power after 49.61% of votes Expected EWCL voting power post-closing of Proposed Investment

Votes per Class B share 20 votes per share Voting structure of the Company’s Class B ordinary shares

Market Reality Check

$1.39 Last Close

Volume Volume 667,776 is about 30% below the 20-day average of 952,090 ahead of this news. normal

Technical Shares at $1.39 are trading below the 200-day MA of $4.01 and 75.83% under the 52-week high of $5.75.

Peers on Argus

Peers showed mixed moves: CNCK +15.23%, SWIN +3.8%, AMRK +2.17% while crypto-adjacent names FUFU -3.85% and HIVE -4.23% declined, suggesting stock-specific factors for CANG.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Dec 24	Analyst rating	Positive	+2.2%	Initiation with buy rating and US$4.00 target citing AI and mining strength.
Dec 05	Operations update	Positive	-6.2%	Monthly Bitcoin production and strategy update with long-term BTC holding.
Dec 02	Earnings release	Positive	-9.7%	Strong Q3 revenue growth and mining metrics with detailed profitability data.
Dec 01	Earnings release	Positive	-3.3%	Q3 2025 financial results highlighting revenue, EBITDA and BTC cost metrics.
Nov 25	Earnings date notice	Neutral	+0.0%	Scheduling announcement for upcoming Q3 2025 financial results and call.

Pattern Detected

Recent history shows several positive or growth-focused announcements followed by negative price reactions, indicating a pattern of selling into good news.

Recent Company History

Over the past months, Cango reported strong Q3 2025 growth with US$224.6M revenue and detailed its shift to Bitcoin mining and AI compute, yet shares fell after these earnings releases. A November operations update with 546.7 BTC produced and a December analyst buy initiation with a US$4.00 target saw mixed reactions, including notable drawdowns. Today’s equity investment by EWCL adds to this narrative of strategic expansion and balance sheet-focused developments amid a volatile share response history.

Regulatory & Risk Context

Active S-3 Shelf Registration 2025-12-17

US$500,000,000 registered capacity

An effective F-3 shelf filed on 2025-12-17 permits Cango to offer up to US$500,000,000 in Class A shares, debt, warrants, or units over time, enabling flexible capital raising through future prospectus supplements.

Market Pulse Summary

This announcement details EWCL’s plan to subscribe for 7,000,000 new Class B shares for US$10,500,000, raising its ownership to 4.69% and voting power to 49.61%, subject to NYSE approval and other closing conditions. It follows recent earnings strength and an F-3 shelf allowing up to US$500,000,000 of securities issuance. Key factors to monitor include transaction closing, future use of the shelf, and any additional governance or capital structure changes.

Key Terms

class b ordinary shares financial

"will issue and deliver to EWCL 7,000,000 Class B ordinary shares, each carrying 20"

Class B ordinary shares are a type of ownership stake in a company that typically come with different voting rights or privileges compared to other share classes. For investors, they represent a way to hold part of the company’s value and influence its decisions, often with fewer voting rights than Class A shares. Understanding these shares helps investors assess their level of control and potential returns within a company.

voting power financial

"with approximately 36.68% of the total voting power of the Company's outstanding"

Voting power is the ability shareholders have to influence a company's major decisions—like electing the board, approving mergers, or changing corporate rules—based on the voting rights attached to the shares they hold. For investors it matters because greater voting power is like holding more keys to a building: it gives you a stronger say over management choices and the company’s strategy, which can affect future value and risk.

closing conditions financial

"Closing of the Proposed Investment is subject to certain customary closing conditions"

Closing conditions are specific requirements or steps that must be met before a financial deal or transaction can be finalized. They act like a checklist that ensures all necessary details are confirmed and agreed upon, giving both parties confidence that the deal is ready to be completed. Meeting these conditions is essential for the transaction to move forward smoothly and successfully.

AI-generated analysis. Not financial advice.

DALLAS, Texas, Dec. 29, 2025 /PRNewswire/ -- Cango Inc. (NYSE: CANG) ("Cango" or the "Company") a leading Bitcoin miner leveraging its global operations to develop an integrated energy and AI compute platform, today announced that Enduring Wealth Capital Limited ("EWCL"), the sole shareholder of the Company's Class B ordinary shares with approximately 36.68% of the total voting power of the Company's outstanding shares, decided to increase its investment in the Company by subscribing for additional Class B ordinary shares of the Company in cash.

Pursuant to an Investment Agreement dated December 29, 2025, between the Company and EWCL, the Company will issue and deliver to EWCL 7,000,000 Class B ordinary shares, each carrying 20 votes per share. EWCL will subscribe for and purchase these shares for an aggregate purchase price of US$10,500,000, implying a per-share price of US$1.5 (the "Proposed Investment").

Upon closing of the Proposed Investment, EWCL's shareholding in the Company is expected to increase from approximately 2.81% to approximately 4.69% of the total outstanding shares. Correspondingly, EWCL's voting power is expected to rise from approximately 36.68% to approximately 49.61% of the total voting power of the Company's outstanding shares.

Closing of the Proposed Investment is subject to certain customary closing conditions, including the requisite approval by the New York Stock Exchange. The Company expects to close the transaction in January 2026. There can be no assurance that all the closing conditions will be satisfied or that the Proposed Investment will be completed.

About Cango Inc.

Cango Inc. (NYSE: CANG) is a Bitcoin mining company with a vision to establish an integrated, global infrastructure platform capable of powering the future digital economy. The Company's mining operations span over 40 sites across North America, the Middle East, South America, and East Africa.

Since entering the digital asset space in November 2024, Cango has activated pilot projects in both integrated energy solutions and distributed AI computing. In parallel, Cango continues to operate an online international used car export business through AutoCango.com.

For more information, please visit: www.cangoonline.com. 

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the "Roadmap Forward" section and quotations from management in this announcement, contain forward-looking statements. Cango may also make written or oral forward-looking statements in its periodic reports to the SEC, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Cango's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Cango's goal and strategies; Cango's expansion plans; Cango's future business development, financial condition and results of operations; Cango's expectations regarding demand for, and market acceptance of, its solutions and services; general economic and business conditions; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in Cango's filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and Cango does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

Investor Relations Contact

Juliet Ye, Head of Communications
Cango Inc.
Email: ir@cangoonline.com

Christensen Advisory
Tel: +852 2117 0861
Email: ir@cangoonline.com

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SOURCE Cango Inc.

FAQ

What is the size and price of EWCL's investment in CANG announced Dec 29, 2025?

EWCL agreed to buy 7,000,000 Class B shares for $10.5M at $1.50 per share.

How will EWCL's voting power change after the CANG investment closes?

EWCL's voting power is expected to increase from ~36.68% to ~49.61%.

When does Cango expect the EWCL subscription to close and what approvals are needed?

The company expects to close in January 2026, subject to customary conditions including NYSE approval.

How will the EWCL purchase affect EWCL's equity percentage of CANG?

EWCL's equity stake is expected to rise from ~2.81% to ~4.69% of outstanding shares.

Does the Dec 29, 2025 investment guarantee completion for Cango (CANG)?

No; the company cautioned there is no assurance all closing conditions will be satisfied.

Will the EWCL transaction dilute current CANG shareholders?

Yes; the issuance of 7,000,000 Class B shares will change share percentages and dilute existing holdings.