Cango Inc. Completes PRC Business Sale, Strengthens Board to Drive Global Bitcoin Focus

Rhea-AI Summary

Cango Inc. (NYSE: CANG) has completed the sale of its PRC Business to Ursalpha Digital Limited for $351.94 million in cash on May 27, 2025. This strategic divestment marks Cango's complete transition to focus on global Bitcoin mining operations across North America, the Middle East, South America, and East Africa.

The company has strengthened its Board of Directors with two new appointments, bringing expertise in Fintech, AI, Web 3.0, and global capital markets. Following shareholder approval on May 16, 2025, Cango will apply to terminate its "China Concept Stock" status with the China Securities Regulatory Commission (CSRC).

Positive

• Substantial cash injection of $351.94 million from PRC Business sale
• Strategic focus shift to high-growth global Bitcoin mining operations
• Geographic diversification across multiple strategic regions
• Board strengthening with expertise in Fintech, AI, and Web 3.0
• Streamlined operations with better capital allocation potential

Negative

• Complete exit from established PRC market operations
• Increased exposure to volatile Bitcoin mining sector
• Regulatory uncertainties in new target markets

Insights

Corporate Strategy Analyst

Cango completes $351.94M divestment of Chinese operations to focus exclusively on global Bitcoin mining with enhanced liquidity and restructured leadership.

Cango's $351.94 million divestment of its entire PRC business represents a definitive strategic pivot, transforming from a Chinese automotive services company into a pure-play global Bitcoin mining operation. This transaction significantly strengthens Cango's balance sheet, providing substantial liquidity to fund aggressive expansion into strategically selected regions including North America, the Middle East, South America, and East Africa.

The timing of this move is particularly noteworthy as it coincides with increasing regulatory scrutiny of cryptocurrency operations in China, effectively removing Cango from this regulatory uncertainty. By divesting its Chinese operations entirely, the company has eliminated exposure to China's regulatory environment while simultaneously securing capital for international expansion in more crypto-friendly jurisdictions.

The addition of two new board members with expertise in Fintech, AI, Web 3.0, and global capital markets signals Cango's intention to leverage cutting-edge technology in its Bitcoin mining operations. This board restructuring complements the strategic shift by bringing in specialized knowledge essential for navigating the cryptocurrency landscape.

Particularly significant is Cango's application to terminate its "China Concept Stock" status with the CSRC, marking a complete departure from its Chinese business identity. This transformation represents one of the more dramatic pivots we've seen from a Chinese-founded NYSE-listed company, essentially creating an entirely new business entity focused exclusively on an industry that faces substantial regulatory barriers in its original home market.

SHANGHAI, May 29, 2025 /PRNewswire/ -- Cango Inc. (NYSE: CANG) ("Cango" or the "Company"), a rapidly expanding leader in Bitcoin mining, has finalized the divestment of all its business in the PRC (the "PRC Business"), a strategic transaction valued at approximately US$351.94 million in cash with Ursalpha Digital Limited. The sale, which closed on May 27, 2025, decisively repositions Cango to concentrate its full financial and operational capabilities on accelerating its leadership in the global Bitcoin mining industry.

This pivotal move unlocks significant resources and facilitates Cango's rapid expansion of its Bitcoin mining across key strategic regions, including North America, the Middle East, South America, and East Africa, leveraging emerging opportunities in the digital finance sector.

This transaction also represents a transformative step for Cango, cementing its strategic shift to a focused leader in global Bitcoin mining. The Company is now streamlined and better capitalized, positioning it to aggressively pursue its growth objectives and enhance shareholder value.

As part of this strategic realignment, the Company has further restructured its Board of Directors with the appointment of two new members, effective May 27, 2025, bringing deep expertise in Fintech, AI, Web 3.0, and global capital markets to steer Cango's Bitcoin-focused future. Looking ahead, this enhanced board composition reinforces Cango's commitment to innovation and strengthens its position for leadership in the rapidly evolving digital finance landscape.

The initial agreements for the sale of PRC Business were announced on April 3, 2025, with shareholder approval obtained on May 16, 2025. Following the divestment, the Company will apply to the China Securities Regulatory Commission ("CSRC") to terminate its "China Concept Stock" status.

About Cango Inc.

Cango Inc. (NYSE: CANG) is primarily engaged in the Bitcoin mining business, with operations strategically deployed across North America, the Middle East, South America, and East Africa. The Company entered the crypto asset space in November 2024, driven by advancements in blockchain technology, the growing adoption of digital assets, and its commitment to diversifying its business portfolio. In parallel, Cango continues to operate an online international used car export business through AutoCango.com, making it easier for global customers to access high-quality vehicle inventory from China. For more information, please visit: www.cangoonline.com.

Media Contact

Juliet Ye
Cango Inc.
Tel: +86 21 3183 5088 ext.5581
Email: ir@cangoonline.com 

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SOURCE Cango Inc.

FAQ

What is the value of Cango's (CANG) PRC Business sale to Ursalpha Digital Limited?

Cango Inc. sold its PRC Business to Ursalpha Digital Limited for US$351.94 million in cash, with the transaction closing on May 27, 2025.

Which regions will CANG focus on for Bitcoin mining operations after selling its PRC Business?

Cango will focus on Bitcoin mining operations across North America, the Middle East, South America, and East Africa.

When did Cango shareholders approve the PRC Business sale?

Cango shareholders approved the PRC Business sale on May 16, 2025.

What changes were made to Cango's Board of Directors in May 2025?

Cango appointed two new board members with expertise in Fintech, AI, Web 3.0, and global capital markets, effective May 27, 2025.

What will happen to Cango's China Concept Stock status after the PRC Business sale?

Cango will apply to the China Securities Regulatory Commission (CSRC) to terminate its 'China Concept Stock' status.