Cango, based in Shanghai, has finalized agreements to sell its operations in China for $351.94 million in cash, indicating a significant shift in focus toward cryptocurrency mining.
Ursalpha Digital Limited, a company incorporated in the British Virgin Islands, is set to acquire Cango’s business in the People’s Republic of China. The agreement stipulates an initial payment of $210.64 million upon the deal’s completion, with the remaining funds dependent on tax liabilities and reductions in credit risk, as outlined in a recent announcement.
This acquisition follows a non-binding proposal made by Enduring Wealth Capital Limited in March, which aimed to gain control of Cango while facilitating the sale of its PRC operations.
The transaction is awaiting approval from shareholders and will require an internal restructuring to separate Cango’s China operations from its overseas ventures, which include Bitcoin (BTC) mining and automotive trading conducted outside of China.
If the sale goes through, Cango intends to deregister as a “China Concept Stock” under the oversight of Chinese regulators. Nevertheless, the buyer reserves the right to withdraw from the agreement if China’s securities authorities deny the deregistration or if EWCL does not succeed in concluding a separate stock acquisition deal with Cango’s co-founders.
Cango’s Shift to Crypto
Cango has already commenced its transition into cryptocurrency mining. The company had earlier entered into an agreement to acquire Bitcoin mining rigs with a total hashrate of 18 EH/s in an arrangement settled through shares with Golden TechGen Limited.
This sale of the PRC business necessitates modifications to the initial agreement, with further changes anticipated.
This transaction represents Cango’s complete shift into the crypto industry, positioning itself as a potential counterpart to leading Bitcoin mining companies.