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NEW YORK - Cango Inc. (NYSE: CANG), known for its involvement in Bitcoin mining, has recently completed a series of strategic moves aimed at cementing its position in the global cryptocurrency sector. The company, currently valued at $536 million, has seen remarkable growth with its stock surging over 220% in the past year. According to InvestingPro analysis, Cango maintains a "GOOD" overall financial health score, suggesting solid fundamentals despite the volatile nature of its business. The company has divested its operations based in the People’s Republic of China (PRC) and introduced changes to its leadership and shareholder structure, marking a significant shift in its business focus.
On May 27, 2025, Cango sold its PRC-based operations to Ursalpha Digital Limited for approximately $351.94 million, a move ratified by shareholders earlier on May 16. This sale is part of Cango’s strategy to concentrate on Bitcoin mining activities outside China, including North America, the Middle East, South America, and East Africa. The divestiture also involves Cango’s application to the China Securities Regulatory Commission for deregistration as a "China Concept Stock." Recent financial data shows the company’s revenue growing at 46.6% over the last twelve months, though InvestingPro analysts note rapid cash burn as a potential concern.
The company’s restructuring continued with executive changes, including the resignation of CFO Mr. Yongyi Zhang and the appointment of two new independent directors with expertise in FinTech and global capital markets. Co-founder and CEO Mr. Jiayuan Lin has taken on the role of interim CFO.
On June 2, Cango announced that its co-founders and their affiliates would sell 10 million Class B ordinary shares to Enduring Wealth Capital Limited (EWCL) for $70 million, with $15 million contingent on certain conditions. This transaction will grant EWCL considerable voting control upon completion, while the founders will convert their Class B shares to Class A shares with reduced voting rights. Post-transaction, EWCL will possess about 2.82% of Cango’s outstanding shares and 36.74% of the voting power, with the founders holding 18.54% of shares and 12.07% of the voting power.
Further bolstering its Bitcoin mining capabilities, Cango entered into an agreement on June 4 to acquire an additional 18 EH/s of mining capacity, issuing 146.7 million Class A ordinary shares to a consortium led by Golden TechGen Limited. This deal, subject to a six-month lock-up period, will increase the company’s total mining capacity to 50 EH/s. An additional 97.8 million shares may be issued if certain price thresholds are met after closing.
Upon finalizing these transactions, the sellers will own about 41.38% of Cango’s shares, with GT holding approximately 18.79% of outstanding shares and 12.23% of total voting power. Notably, GT has recently undergone a change in ownership, with new shareholders Mr. Ning Wang, Mr. Youngil Kim, and Mr. Wye Sheng Kong each acquiring a third of GT’s voting power.
"These strategic transactions and our new shareholders empower us to pursue unmatched scale and efficiency in Bitcoin mining," said Jiayuan Lin, underscoring the company’s expansion plans and commitment to stakeholder value. Cango, which entered the crypto asset space in November 2024, also operates an international online used car export business. With a current ratio of 1.41 and more cash than debt on its balance sheet, the company appears well-positioned for its expansion plans. For deeper insights into Cango’s financial health and growth prospects, investors can access comprehensive analysis and 13 additional ProTips through InvestingPro’s detailed research reports.
This article is based on a press release statement from Cango Inc.
In other recent news, Cango Inc. has announced a third amendment to its agreement for acquiring crypto mining assets, as detailed in a filing with the U.S. Securities and Exchange Commission. This amendment adjusts the terms of the acquisition, including the issuance of 146,670,925 Class A ordinary shares at closing, with an additional 97,780,616 bonus shares possible upon a trigger event. The company has also finalized the disposal of its business operations in the People’s Republic of China, marking a significant restructuring effort. This disposal was accompanied by changes in Cango’s Board of Directors and senior management team. In related developments, Cango has reached a definitive agreement with its founders and Enduring Wealth Capital Limited, although the financial terms and strategic goals were not disclosed. Furthermore, Golden TechGen Limited is set to hold a substantial portion of Cango’s shares, with a new shareholder structure in place following a change of control. Cango’s recent extraordinary general meeting, as reported in an SEC filing, did not disclose specific outcomes but reaffirmed the company’s compliance with reporting requirements. These developments indicate Cango’s ongoing strategic adjustments and efforts to align with industry trends and market demands.
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