Street Calls of the Week
HONG KONG - Cango Inc. (NYSE:CANG), which has seen its stock surge 157% over the past year and currently maintains a market capitalization of $774 million, announced Wednesday that its board of directors has approved the termination of its American depository receipt program, with plans to directly list its Class A ordinary shares on the New York Stock Exchange. According to InvestingPro analysis, the company appears overvalued at its current trading price of $4.37.
The ADR program and related Deposit Agreement will terminate after market close on November 14, 2025, according to the company’s press release statement. At that time, the ADSs will be mandatorily cancelled, with each ADS holder receiving two Class A ordinary shares. Trading of the Class A ordinary shares on NYSE under the existing "CANG" symbol is expected to commence on November 17, 2025. The company maintains a healthy liquidity position with a current ratio of 1.64, indicating strong ability to meet short-term obligations.
Cango’s board believes the transition to direct listing is in the best interest of the company and its shareholders. The change will allow U.S. investors to exercise their rights directly as shareholders rather than through a depositary, eliminating depositary fees for current ADS holders.
The company, which entered the Bitcoin mining business in November 2024, maintains operations across North America, the Middle East, South America, and East Africa. Cango also continues to operate an online international used car export business through AutoCango.com. Despite impressive revenue growth of 380% in the last twelve months, InvestingPro data shows the company remains unprofitable with a net loss of $196.55 million. For deeper insights into Cango’s financial health and growth prospects, subscribers can access the comprehensive Pro Research Report, available exclusively on InvestingPro.
The depositary has been instructed to distribute a termination notice to ADS holders on October 15, providing additional information regarding the termination process.
The ADR program being terminated was established pursuant to the Deposit Agreement dated July 25, 2018, as amended, among the company, Citibank, N.A. as the depositary, and ADS holders.
In other recent news, Cango Inc. reported its financial results for the second quarter of 2025, revealing a significant loss. The company posted earnings per share of -2.76 USD, which was much lower than the anticipated -0.23 USD. Additionally, revenue reached only 139.84 million USD, falling short of the expected 1.44 billion USD. Despite these disappointing results, H.C. Wainwright has reiterated its Buy rating for Cango stock, maintaining a price target of 8.00 USD. In September 2025, Cango mined 616.6 bitcoin, a decrease from the 663.7 bitcoin mined in August. The company’s daily bitcoin production averaged 20.55 in September. Cango operates with 43.7 exahash per second, achieving 87% efficiency of its 50 Eh/s deployed capacity. These developments reflect the company’s ongoing transition from car purchase financing to bitcoin mining.
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