Market is Reassessing Cango as a Global Bitcoin-Focused Company. Since May 27, 2025, Cango Inc. (NYSE: CANG) has rolled out a series of updates that make one thing clear: it’s no longer the same company. With the sale of its China operations now behind it, a refreshed leadership team in place, and a firm push into Bitcoin mining—including 18 EH/s mining machines acquisition—the company is making a bold pivot to become a global crypto infrastructure player. Since that announcement, shares have climbed 5% and are up 15% year-to-date, suggesting the market is beginning to take notice.

A New Chapter for Cango: Exit from China and New Leadership. On May 27, Cango officially closed its US$352 million sale of all China-based operations to Ursalpha Digital Limited. That marks a clean break from the company’s legacy business. As part of the move, four directors and the CFO stepped down, and the board brought in fresh expertise. Mr. Jiayuan Lin took over as interim CFO, and two new independent directors—Mr. Yanjun Lin and Prof. Haitian Lu—joined the board, bringing experience in fintech, AI, and sustainability. Cango is also filing to terminate its “China Concept Stock” status with Chinese regulators, a voluntary move that reinforces its intent to reposition globally and improve governance transparency.

Change of Control Signals Strategic Shift. On June 2, 2025, Cango announced a definitive agreement under which its co-founders will sell 10 million Class B ordinary shares to Enduring Wealth Capital Limited (EWCL) for up to US$70 million. That values the shares at US$7.00 each, or US$14.00 per ADS—a 176% premium to the current share price of US$5.08. While some of that premium reflects control rights, it’s still a strong signal of what a financial buyer thinks the business could be worth. As part of the deal, EWCL will retain enhanced voting rights (20 votes per share), while remaining founder-held Class B shares will convert to regular Class A shares (one vote per share). Depending on how things play out with a previously announced mining acquisition, EWCL could end up with as much as 50% of total voting power. The deal still needs shareholder approval, but has already been cleared by Cango’s board and audit committee. Figure 2 lays out the post-deal shareholding breakdown.

18 EH/s Acquisition on Track, with Slightly Faster Delivery Expected. Cango first announced its plan to acquire 32 EH/s of mining power in cash from Bitmain and another 18 EH/s in shares from Golden TechGen Limited (GT) and others back in November 2024. The cash deal has closed; the 18 EH/s equity deal is scheduled for deployment by the end of July 2025. The price tag for the 18 EH/s portion is US$144 million, to be paid via 145.7 million Class A shares (~US$1.00/share or US$2.00/ADS). Sellers are subject to a 6-month lock-up and are eligible for 97.1 million bonus shares if Cango’s market cap exceeds US$1.8 billion (~US$10.00/ADS) for 30 consecutive trading days. On June 4, Cango announced a third amendment to this agreement to adjust the share count (now 146.7 million and 97.8 million bonus shares) and align terms with its China exit and the EWCL transaction. GT will hold 18.79% of total shares once this closes, and all sellers will own 41.38% collectively. Importantly, the US$144 million valuation and incentive structure remain unchanged. Additional shares tied to additional PRC-related costs are still in place, though we view the risk of further dilution from that clause as low. Based on internal progress and commentary, we now expect the 18 EH/s deployment to complete slightly ahead of schedule.

Valuation Remains Attractive as Cango Transitions into a Crypto Play. In our May 15 report, “All in on Bitcoin,” we noted that Cango’s clean break from China removes a major regulatory risk and sets the stage for a fresh valuation story. With the mining infrastructure build-out progressing and crypto markets showing renewed momentum—highlighted by Circle’s blockbuster IPO (US$1B raised, +168% on Day 1)—investors appear to be warming up. EWCL’s offer, valuing Cango at US$14.00 per ADS, stands in stark contrast to its current market price of US$5.08. As of June 5, 2025, Cango held 3,504.1 BTC worth roughly US$350 million. Its total market cap is US$528 million. With our forecasted revenues of US$952 million in CY2025 and US$1,053 million in CY2026, the stock is trading at just 0.6x and 0.5x P/S—well below peers like Marathon Digital (MARA), Riot Platforms (RIOT), and Core Scientific (CORZ), which trade at 6.3x and 4.5x, respectively. With execution improving and visibility rising, we believe Cango has significant room for multiple re-rating.