Cango Inc. Secures US$10.5 Million Investment from EWCL to Accelerate Growth

Rhea-AI Summary

Cango (NYSE: CANG) announced a US$10.5 million investment from Enduring Wealth Capital Limited (EWCL) under an Investment Agreement dated December 29, 2025. EWCL will subscribe for 7 million Class B ordinary shares at US$1.50 per share, with each Class B share carrying 20 votes. After closing, EWCL's equity stake is expected to rise from ~2.81% to ~4.69% while its voting power is expected to increase from ~36.68% to ~49.61%. Closing is subject to customary conditions, including New York Stock Exchange approval, and the company expects to close in January 2026. The company said proceeds will accelerate Bitcoin mining efficiency upgrades and development of energy and AI compute initiatives.

Positive

• Capital injection of US$10.5 million
• Issuance of 7 million Class B shares at US$1.50
• Proceeds designated for mining, energy, and AI compute initiatives

Negative

• EWCL voting power expected to reach ~49.61%
• Issuance of 7 million new shares increases outstanding shares (dilution)
• Closing conditioned on NYSE approval, possible timing risk

Key Figures

EWCL investment size US$10.5 million Cash commitment to subscribe for additional Class B ordinary shares

Subscription price US$1.50 per share Cash subscription price for new Class B ordinary shares

New Class B shares 7,000,000 shares Number of additional Class B ordinary shares to be issued to EWCL

Voting rights per Class B 20 votes per share Each Class B ordinary share carries 20 votes

EWCL ownership before 2.81% Approximate stake in total outstanding shares prior to investment

EWCL ownership after 4.69% Expected stake in total outstanding shares post-closing

Voting power before 36.68% Approximate voting power in company before proposed investment

Voting power after 49.61% Expected voting power after completion of proposed investment

Market Reality Check

$1.36 Last Close

Volume Volume 667,121 is below the 20-day average of 964,198 (relative volume 0.69x). low

Technical Price $1.36 is trading below the 200-day MA of $4.00, indicating a longer-term downtrend before this news.

Peers on Argus

Peers showed mixed moves pre-news: SWIN up 3.8%, AMRK up 2.17%, while crypto-related names like CNCK fell 20.75% and FUFU declined 3.6%, suggesting company-specific rather than broad sector momentum.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Dec 24	Analyst initiation	Positive	+2.2%	Buy rating and <b>$4.00</b> target citing asset-light mining and AI potential.
Dec 05	Operations update	Neutral	-6.2%	November bitcoin production metrics and strategy toward green energy AI compute.
Dec 02	Earnings results	Positive	-9.7%	Q3 2025 revenue and bitcoin mining growth with improved operating metrics.
Dec 01	Earnings results	Positive	-3.3%	Detailed Q3 2025 financials, BTC production, costs and balance sheet metrics.
Nov 25	Earnings date	Neutral	+0.0%	Announcement of date and call details for upcoming Q3 2025 results.

Pattern Detected

Recent fundamentally positive updates (buy rating, strong Q3 results) often saw negative next-day reactions, indicating a pattern of market skepticism toward good news.

Recent Company History

Over the last few months, Cango has highlighted its transition to Bitcoin mining, NYSE direct listing, and AI/energy ambitions. On Nov 25, it scheduled Q3 2025 results, followed by strong Q3 financials with significant bitcoin mining revenues on Dec 1–2, which nonetheless saw share price declines. A November mining update on Dec 5 and a bullish analyst initiation with a $4.00 target on Dec 24 reinforced the asset-light mining and AI/HPC story. Today’s capital investment fits this ongoing growth and infrastructure build-out narrative.

Regulatory & Risk Context

Active S-3 Shelf Registration 2025-12-17

US$500,000,000 registered capacity

An effective F-3 shelf filed on Dec 17, 2025 allows Cango to offer up to US$500,000,000 of securities over time, providing flexibility to raise additional capital through Class A shares, debt, warrants or units as needed. This capital-raising capacity sits alongside today’s separate US$10.5M strategic investment.

Market Pulse Summary

The stock is up +5.2% following this news. A strong positive reaction aligns with the clearly supportive nature of this US$10.5 million strategic investment at US$1.50 per share and the increased backing from EWCL, whose stake is expected to rise to 4.69%. Historically, Cango’s positive news sometimes met skepticism, as seen after strong Q3 results, so any outsized move could reflect shifting sentiment. Investors may also weigh this deal against the existing US$500,000,000 F-3 shelf capacity when assessing longer-term dilution risk.

Key Terms

ai compute technical

"integrated energy and AI compute platform, announced that Enduring Wealth Capital Limited"

AI compute is the total processing power, memory and energy needed to train and run artificial intelligence models, delivered by specialized chips and large data‑center servers. It matters to investors because compute determines how fast and cheaply a company can develop and scale AI products — like the engine and fuel for those products — so its availability and cost directly affect margins, capital needs and competitive edge.

class b ordinary shares financial

"EWCL will subscribe for additional Class B ordinary shares in cash at US$1.50 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.

voting power financial

"EWCL's voting power is expected to rise from approximately 36.68% to approximately 49.61%"

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.

AI-generated analysis. Not financial advice.

DALLAS, Dec. 30, 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, announced that Enduring Wealth Capital Limited ("EWCL") increased its investment in the Company with a US$10.5 million commitment. EWCL will subscribe for additional Class B ordinary shares in cash at US$1.50 per share. This transaction underscores a strong, aligned vision for Cango's future and provides substantial capital to accelerate its core growth initiatives.

Under the terms of this agreement:

• Pursuant to an Investment Agreement dated December 29, 2025, between the Company and EWCL, the Company will issue and deliver to EWCL 7 million Class B ordinary shares, each carrying 20 votes per share.
• 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.

Paul Yu, CEO and Director of Cango, commented, "The increased investment from EWCL is a powerful vote of confidence in our strategic roadmap. The strengthened alignment with a major shareholder who thoroughly understands our vision enables us to execute with greater certainty and ambition. In 2026, we will continue to strengthen our Bitcoin mining operational capabilities, with a focus on improving hashrate efficiency, upgrading our mining fleet, and selectively acquiring strategic mining assets. Beyond our core mining business, this capital also supports the parallel development of our strategic pillars in energy and AI compute. We are actively exploring and investing in synergistic opportunities in these areas as we build toward our long-term goal: establishing an integrated, global infrastructure platform capable of powering the future digital economy."

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. This step is expected to support the Company's progress on its strategic priorities and provide capital to implement key initiatives in the year ahead.

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: cango@christensencomms.com

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SOURCE Cango Inc.

FAQ

What did Cango (CANG) announce on December 30, 2025?

Cango announced a US$10.5 million investment from EWCL to subscribe for 7 million Class B shares at US$1.50 per share.

How will the EWCL investment affect EWCL's ownership and voting power in Cango (CANG)?

EWCL's ownership is expected to rise from ~2.81% to ~4.69%, and voting power from ~36.68% to ~49.61% after closing.

When does Cango (CANG) expect the EWCL investment to close?

The company expects to close the transaction in January 2026, subject to customary conditions and NYSE approval.

What price per share did EWCL agree to pay for Cango (CANG) Class B shares?

EWCL will pay US$1.50 per Class B ordinary share.

What will Cango (CANG) use the US$10.5 million investment for?

Proceeds are intended to accelerate Bitcoin mining upgrades and support development of energy and AI compute initiatives.

Does the EWCL investment require regulatory or exchange approval for Cango (CANG)?

Yes; closing is subject to customary closing conditions, including approval by the New York Stock Exchange.