Cango announces fourth amendment to crypto mining assets deal

Published 23/06/2025, 11:06
Cango announces fourth amendment to crypto mining assets deal

HONG KONG - Cango Inc. (NYSE:CANG), a $462 million market cap company currently trading at $4.45, has entered into a fourth amendment to its November 2024 agreement for the acquisition of crypto mining machines with a combined hashrate of 18 Exahash per second, the company announced Monday. According to InvestingPro data, the company maintains a strong balance sheet with more cash than debt.

The amendment adjusts the distribution of hashrate among certain sellers, including Golden TechGen Limited, Fortune Peak Limited and Silver Crest Limited. This adjustment consequently modifies the allocation of Class A ordinary shares to be issued to these sellers at closing, as well as potential bonus shares.

Following the closing of the transaction, Golden TechGen Limited is expected to become Cango’s largest seller, owning approximately 19.85% of the company’s total outstanding shares. The total hashrate represented by the mining machines, the total number of shares to be issued at closing, and the total potential bonus shares remain unchanged. The company has demonstrated strong performance, with revenue growing 46.6% over the last twelve months and maintaining a healthy current ratio of 1.41.

The company previously announced the original purchase agreement on November 6, 2024, with subsequent amendments on March 26, April 3, and June 4, 2025.

Cango noted that the transaction’s completion remains subject to certain closing conditions that have yet to be satisfied or waived. The company stated it is working with relevant parties toward closing, though there is no guarantee the conditions will be met or that the transaction will be completed by the stipulated closing date.

Cango primarily operates in the Bitcoin mining business with operations across North America, the Middle East, South America, and East Africa, according to the press release statement. The company entered the crypto asset space in November 2024 while maintaining its online international used car export business. With a remarkable 166% return over the last year, investors seeking detailed analysis can access comprehensive metrics and expert insights through InvestingPro’s exclusive research reports, covering over 1,400 US stocks.

In other recent news, Cango Inc. has completed the sale of its operations in the People’s Republic of China to Ursalpha Digital Limited for approximately $351.94 million. This move aligns with Cango’s strategy to focus on Bitcoin mining activities outside China, including regions like North America and the Middle East. Additionally, the company has amended its agreement for acquiring crypto mining assets, now planning to issue 146.7 million Class A ordinary shares, with a potential for additional shares if certain conditions are met. These changes follow Cango’s broader efforts to expand its presence in the cryptocurrency sector.

Cango has also entered into a definitive agreement with its co-founders and Enduring Wealth Capital Limited (EWCL), which will see the sale of 10 million Class B ordinary shares for $70 million. This transaction will significantly alter the company’s voting structure, granting EWCL considerable voting control. Furthermore, Cango has announced leadership changes, including the resignation of its CFO and the appointment of two new independent directors. The company continues to reshape its operations and shareholder structure as it pursues growth in the digital asset space.

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