Cango Inc. Secures $10.5 Million Investment from EWCL to Boost Growth Efforts

Cango Inc. Secures Major Investment to Drive Future Growth

Cango Inc. (NYSE: CANG), a leading player in the Bitcoin mining industry, has successfully secured a notable investment of $10.5 million from Enduring Wealth Capital Limited (EWCL). This strategic financial commitment aims to accelerate Cango's growth trajectory and expand its operational capabilities.

Investment Details

The investment entails EWCL subscribing for additional Class B ordinary shares at a price of $1.50 per share. This move not only reflects EWCL's confidence in Cango's vision but also strengthens their alignment towards a mutually beneficial future. Post-investment, EWCL's shareholding in Cango is projected to rise from approximately 2.81% to about 4.69% of the total outstanding shares. Additionally, the voting power of EWCL which currently stands at around 36.68% is expected to increase to about 49.61% once the investment process is finalized.

Strategic Growth Plans

Paul Yu, the CEO of Cango, expressed his enthusiasm regarding the investment, highlighting it as a powerful endorsement of the company's strategic roadmap. "The increased investment from EWCL signifies strong confidence in our ability to execute our strategic initiatives. Strengthening our alignment with a major shareholder who thoroughly understands our vision empowers us to act with greater confidence and ambition," Yu stated.

Cango has set ambitious targets for 2026, focusing on bolstering its Bitcoin mining capabilities. This includes enhancing hash rate efficiency, upgrading its mining fleet, and selectively acquiring strategic mining assets. Moreover, the capital infusion will also support the development of complementary projects in energy and artificial intelligence processing, positioning Cango favorably in the evolving digital economy.

Future Prospects

Cango's vision extends beyond just Bitcoin mining. The company is actively exploring opportunities to invest in synergistic sectors that will contribute to building a comprehensive global infrastructure platform for the future digital economy. As they finalize the investment process, which is subject to customary closing conditions including the approval from the New York Stock Exchange, the company expects to close the transaction by January 2026.

This investment is not merely a financial transaction; it represents a commitment to pursuing innovative pathways in energy solutions and technology reliant on artificial intelligence. Yu reiterated, "We are exploring and investing in intertwining opportunities in these fields while working towards our long-term ambition of creating integrated global infrastructure."

As the digital landscape continues to evolve, Cango Inc. is poised to be at the forefront of the Bitcoin mining sector and beyond, reinforcing its growth with substantial investments and strategic partnerships. The coming months will be pivotal as the company embarks on its updated initiatives and strives to accomplish its aspirational goals.