Cango to Offload Chinese Assets for $352M, Eyes Bitcoin Mining Growth

Cango’s (NYSE: CANG) cash deal includes an initial payment of $210.64 million upon closing, with the remaining $141.3 million contingent on Cango fulfilling tax obligations and reducing credit risk exposure linked to sold entities. The transaction, approved by Cango’s board and a special committee, responds to a March 14 proposal from Enduring Wealth Capital Limited (EWCL) to acquire control of the company and divest its PRC business.

Closing conditions require shareholder approval and completion of an internal restructuring to separate Cango’s China operations—including automotive trading—from its international bitcoin mining and automotive businesses. If finalized, Cango will petition the China Securities Regulatory Commission (CSRC) to terminate its “China Concept Stock” status, subject to a reversal clause if the status remains unchanged within three months or if EWCL’s proposed secondary acquisition of 10 million Class B shares from co-founders fails.

On paper, Cango’s financial health remains strong, with a $415 million market cap, a current ratio of 1.88, and gross profit margins of 55%. Its stock has surged 195% over the past year, trading at a P/E ratio of 11.89. The company also renegotiated terms with Golden Techgen Limited for its bitcoin mining machine acquisition, initially settled via share issuance, to avoid defaults post-divestiture.

Recent developments include a 12% monthly increase in bitcoin production to 530.1 coins in March 2025, a deadline extension for closing its mining assets acquisition, and inclusion in the Bitwise Bitcoin Standard Corporations ETF. A $30 million share buyback program further shows efforts to boost shareholder value. The deal highlights Cango’s strategic pivot from its legacy automotive operations to capitalize on cryptocurrency demand.

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