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Investing.com - H.C. Wainwright initiated coverage of Cango Inc . (NYSE:CANG) with a Buy rating and an $8.00 price target on Wednesday, highlighting the company’s transformation from auto financing to Bitcoin mining. The stock, currently trading at $5.18, has delivered an impressive 165.64% return over the past year, though InvestingPro analysis indicates the stock is currently trading above its Fair Value.
The firm noted that Cango, founded in 2010 in Shanghai and listed on the NYSE in July 2018, pivoted from its legacy auto-finance business to Bitcoin mining in November 2024. The company’s mining fleet now operates at 50 exahash per second (Eh/s) across four continents, following an 18 Eh/s share-settled acquisition that closed on June 27.
Cango mined 1,541 Bitcoin in the first quarter of 2025, up from 934 Bitcoin during November and December 2024, which lifted revenue to $145 million from approximately $91 million quarter-over-quarter. The company held roughly 3,430 Bitcoin at the end of May, valued at approximately $360 million.
On May 27, Cango completed the $352 million sale of all its legacy auto operations in China, boosting pro forma liquidity above $550 million. The company has retained some involvement in foreign sales of used cars through web-based tools, but its focus has shifted to global mining expansion.
H.C. Wainwright cited Cango’s "established scale, funded growth, Bitmain operating expertise, and a reset capital structure" as key factors supporting its Buy rating, noting that the company currently stands in a three-way tie for second place in public-miner Eh/s rankings.
In other recent news, Cango Inc. reported mining 450 bitcoins in June 2025, a slight decrease from the 484.5 bitcoins mined in May. The company’s bitcoin holdings rose to 3,879.2 by the end of June, with no sales of bitcoins during the month. Cango has also announced a fourth amendment to its agreement for acquiring crypto mining machines, which involves adjustments in the distribution of hashrate and allocation of Class A ordinary shares among sellers. Additionally, Cango completed a significant divestiture of its operations in China, selling them to Ursalpha Digital Limited for approximately $351.94 million. This move is part of Cango’s strategy to focus on Bitcoin mining outside China, including regions like North America and the Middle East. As part of this strategic shift, Cango has applied for deregistration as a "China Concept Stock" with the China Securities Regulatory Commission. Furthermore, Cango has adjusted the terms of its crypto mining assets acquisition with a third amendment to the Purchase Agreement, altering the number of shares to be issued to sellers. The amendment also introduces a contingency for additional shares if proceeds from the PRC business sale decrease by $7.0 million or more.
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