Cango Inc., once a powerhouse in China’s automotive sector, is making a seismic shift—divesting its business in China for a staggering $352 million and steering full throttle into the world of cryptocurrency. The buyer, Ursalpha Digital Ltd., has agreed to the cash deal, marking a radical departure for Cango as it untethers itself from its traditional market and embraces its new identity as an international Bitcoin mining operation.
Deal Details: A Staggered Payout with Strings Attached
The agreement outlines an initial lump sum payment of approximately $210.6 million upon closing, with the remaining balance to be disbursed in quarterly installments. However, these payments hinge on certain credit risk reduction conditions—a built-in safeguard that adds an element of financial suspense to the transaction.
Cango’s pivot comes after a March 14 revelation that Enduring Wealth Capital Ltd. (EWCL) had submitted a nonbinding letter of intent proposing a takeover via the Ursalpha Digital Ltd. entity. The planned buyout is more than just a financial transaction—it’s a leadership overhaul.
Leadership Shakeup: A Total Overhaul on the Horizon
If the deal moves forward, Cango’s co-founders, Xiaojun Zhang and Jiayuan Lin, will step down from both their board and management positions. The shake-up will hand over the reins to EWCL, which has plans to completely restructure the leadership team to align with its strategic vision.
