Cango Inc. Closed the US$10.5 Million Equity Investment and Secured US$65 Million Additional Equity Investments

Cango (NYSE: CANG) closed a US$10.5 million equity investment from Enduring Wealth Capital and signed definitive agreements for an additional US$65 million of insider-led equity investments expected to close in February 2026.

Rhea-AI Summary

Cango (NYSE: CANG) closed a US$10.5 million equity investment from Enduring Wealth Capital and signed definitive agreements for an additional US$65 million of insider-led equity investments expected to close in February 2026.

The company issued 7.0 million Class B shares to EWCL at US$1.50 (20 votes/share), and agreed to sell Class A shares at US$1.32 to entities owned by Chairman Xin Jin and director Chang-Wei Chiu. Proceeds will fund expansion into AI/compute infrastructure and strengthen the balance sheet.

Positive

• Closed US$10.5M Class B investment from EWCL
• Secured US$65M additional equity commitments from insiders
• EWCL voting power increased to approximately 49.71%
• Proceeds earmarked for AI and computing infrastructure expansion

Negative

• Issued 7.0M Class B shares with 20 votes each, diluting economic/share class balance
• Insider purchases at US$1.32 may concentrate insider ownership and influence

Argus Feb 12 session

-9.35% close to close Open Argus

Details

News Market Reaction – CANG

On Feb 12, the day this news came out, CANG closed 9.35% below the previous close.

Data tracked by StockTitan Argus for the Feb 12 session.

Key Figures

EWCL equity investment: US$10.5 million Additional equity commitments: US$65 million EWCL share issuance: 7,000,000 Class B shares +5 more

EWCL equity investment

US$10.5 million

Closed equity investment from Enduring Wealth Capital Limited

Additional equity commitments

US$65 million

Agreed investments from entities owned by Mr. Jin and Mr. Chiu

EWCL share issuance

7,000,000 Class B shares

Issued at US$1.50 per share under Class B Investment

EWCL ownership post-closing

4.71% equity; 49.71% voting power

Beneficial ownership and voting power after Class B Investment

FPL subscription size

29,975,137 Class A shares

Mr. Chiu Class A Investment for US$39,567,181

ANL subscription size

19,267,287 Class A shares

Mr. Jin Class A Investment for US$25,432,819

Class A pricing

US$1.32 per share

Purchase price for Class A investments, based on 4-week closing prices

Expected insider stakes

Mr. Chiu 11.99% / Mr. Jin 4.70%

Post-closing total outstanding share ownership

Historical Context

5 past events · Latest: Feb 09

5 events

1. Feb 09

   Shareholder letter

   24h Move

   -5.5%

   Outlined strategic pivot from Bitcoin mining toward distributed AI inference platform.

2. Feb 09

   Asset sale, strategy

   24h Move

   -5.5%

   Sold 4,451 BTC for US$305M to repay loan and fund AI transformation.

3. Feb 03

   Operations update

   24h Move

   +0.0%

   Reported January BTC production, hashrate metrics, and selective BTC sales plan.

4. Jan 05

   Production update

   24h Move

   +16.3%

   Detailed December BTC output increase and US$10.5M shareholder commitment.

5. Dec 30

   Equity financing

   24h Move

   -6.6%

   Announced US$10.5M EWCL investment via high‑vote Class B ordinary shares.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

class b ordinary shares, class a ordinary shares, voting power, regulatory approvals

4 terms

class b ordinary shares financial

"issued 7 million Class B ordinary shares, each carrying 20 votes per share"

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.

class a ordinary shares financial

"subscribe for 29,975,137 Class A ordinary shares, each carrying one vote per share"

Class A ordinary shares are a type of ownership stake in a company that typically grants voting rights to shareholders, allowing them to have a say in important company decisions. They often come with priority in receiving dividends or profits, making them attractive to investors seeking influence and potential income. These shares help distinguish different levels of ownership and rights within a company's stock structure.

voting power financial

"its voting power rose from approximately 36.68% to 49.71% of the total voting power"

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.

regulatory approvals regulatory

"Closing of each investment is subject to customary conditions and regulatory approvals"

Regulatory approvals are official permissions from government agencies that a company needs before launching a new product, service, or business activity. They matter because without this approval, the company might not be allowed to operate legally or sell its products, similar to how a driver needs a license to legally drive a car.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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DALLAS, Feb. 12, 2026 /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 it closed the previously announced US$10.5 million equity investment from Enduring Wealth Capital Limited ("EWCL"), and entered into definitive agreements with entities wholly-owned by Mr. Xin Jin, Chairman of the Company, and Mr. Chang-Wei Chiu, a director of the Company, pursuant to which these entities agreed to make equity investments in the aggregate amount of US$65 million in the Company.

As previously announced, the Company entered into an investment agreement with EWCL on December 29, 2025, and recently issued 7 million Class B ordinary shares, each carrying 20 votes per share, to EWCL at US$1.50 per share (the "Class B Investment"). After closing, EWCL's beneficial ownership increased from approximately 2.81% to approximately 4.71% of the Company's total outstanding ordinary shares, and its voting power rose from approximately 36.68% to 49.71% of the total voting power.

To reaffirm their confidence in the Company's strategic trajectory and future prospects, Mr. Jin and Mr. Chiu indicated their intent to make equity investments. With the approval of the audit committee and the board of directors, the Company entered into (i) an investment agreement with Fortune Peak Limited ("FPL"), wholly owned by Mr. Chiu, pursuant to which FPL agrees to subscribe for 29,975,137 Class A ordinary shares, each carrying one vote per share, for an aggregate of US$39,567,181 (the "Mr. Chiu Class A Investment"), and (ii) an investment agreement with Armada Network Limited ("ANL"), wholly owned by Mr. Jin, for 19,267,287 Class A shares for an aggregate of US$25,432,819 (the "Mr. Jin Class A Investment"). The purchase price, US$1.32 per share, was determined with reference to the closing price of the Company's Class A shares over the preceding four weeks.

Upon completion, Mr. Chiu is expected to hold approximately 11.99% of the total outstanding shares and 6.71% of the voting power; Mr. Jin approximately 4.70% and 2.63%, respectively. Closing of each investment is subject to customary conditions and regulatory approvals, with both expected to close in February 2026.

The Company intends to use the proceeds from these investments to support its expansion into AI and computing infrastructure, while further strengthening its balance sheet.

Investor Relations Contact
Juliet Ye, Head of Communications
ir@cangoonline.com 

 

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SOURCE Cango Inc.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did Cango (CANG) announce on February 12, 2026 regarding new investments?

Cango closed a US$10.5 million Class B equity investment and secured US$65 million more. According to the company, EWCL bought 7.0 million Class B shares at US$1.50 and insiders agreed to buy Class A shares totaling US$65 million at US$1.32 per share.

How did the EWCL investment change EWCL’s ownership and voting power in Cango (CANG)?

EWCL’s beneficial ownership rose to about 4.71% and voting power to about 49.71%. According to the company, EWCL received 7.0 million Class B shares carrying 20 votes per share at US$1.50 each.

What are the terms of the insider equity investments in Cango (CANG) announced February 12, 2026?

Insiders committed to US$65 million in Class A shares at US$1.32 per share. According to the company, Mr. Chiu’s entity will subscribe for US$39,567,181 (29,975,137 shares) and Mr. Jin’s entity for US$25,432,819 (19,267,287 shares), subject to closing conditions.

How will the insider investments affect Mr. Chiu’s and Mr. Jin’s holdings in Cango (CANG)?

After closing, Mr. Chiu is expected to hold ~11.99% of shares and ~6.71% voting power; Mr. Jin ~4.70% and ~2.63% voting power. According to the company, these figures are estimated pending customary closing conditions and regulatory approvals.

What will Cango (CANG) use the proceeds from the US$75.5 million equity financing for?

Cango intends to use the funds to expand into AI and computing infrastructure and to strengthen its balance sheet. According to the company, the proceeds will support growth in integrated energy and AI compute platforms.