Cango confirmed that its special committee and board have given the green light to the sale. However, the final decision rests in the hands of shareholders and is contingent upon the completion of an internal restructuring. This includes carving out its China-based operations from its thriving Bitcoin mining and automotive trading businesses overseas.
A Bold Transformation: From Car Deals to Crypto Blocks
Founded in 2010 as a vehicle transaction service provider, Cango has evolved dramatically. By late 2024, the company had plunged into the crypto sector, rebranding itself as a “leading Bitcoin mining business” with a sprawling presence across North America, the Middle East, South America, and East Africa. Crypto mining—where transactions are verified and added to blockchain networks—has now become the company’s primary focus.
If the transaction gets the final nod, Cango has announced its intention to file with the China Securities Regulatory Commission to shed its “China Concept Stock” classification, a move that would cement its transition out of the Chinese market.
Exit Clause: A Reversible Deal?
Yet, there’s a twist. The agreement grants Ursalpha Digital Ltd. the right to pull the plug on the transaction within three months if Chinese regulators refuse to strip Cango of its China Concept Stock status. This provision adds an element of uncertainty, leaving room for regulatory roadblocks that could derail the deal.
