In a dramatic strategic shift, Shanghai-based Cango Inc. has announced its complete exit from the Chinese market through a $351.94 million cash deal, signaling its full commitment to the Bitcoin mining industry.
According to an official release, Ursalpha Digital Limited, a firm registered in the British Virgin Islands, will acquire Cango’s domestic business. The deal involves an upfront payment of $210.64 million, with additional payments pending regulatory and credit-related milestones.
Restructuring Strategy to Enable Crypto Focus
This move follows a non-binding proposal from Enduring Wealth Capital Limited (EWCL) in March, aimed at acquiring Cango and overseeing the divestiture of its China-based operations.
To proceed, Cango will undergo an internal restructuring to separate its mainland assets from its offshore holdings, which include Bitcoin mining operations and international automotive trading.
If approved, Cango also plans to deregister as a China Concept Stock, effectively removing it from the oversight of Chinese securities regulators. However, the agreement could be voided if deregistration is blocked or if EWCL fails to finalize a share acquisition deal with Cango’s co-founders.
Pivot to Bitcoin Mining Underway
Cango has already taken steps to rebrand itself as a pure-play crypto mining company. It recently signed a share-based agreement with Golden TechGen Limited to acquire Bitcoin mining rigs totaling 18 EH/s in hashrate capacity.
The agreement may be revised in light of the China divestment, as the company restructures its global strategy to focus exclusively on crypto infrastructure.
This transition marks a complete departure from its legacy auto services business, positioning Cango as a potential institutional proxy for Bitcoin mining exposure.
