Cango Inc. (NYSE: CANG) completed a $10.5 million equity transaction with Enduring Wealth Capital Limited (EWCL) on December 29, 2025. EWCL subscribed for 7 million Class B ordinary shares at $1.50 each, a price that reflects the company’s current valuation and the strategic value of the shares’ 20‑vote weight.
The deal lifts EWCL’s voting stake from 36.68 % to 49.61 %, placing the investor just shy of a 50 % threshold. This concentration of voting power is significant because EWCL is closely linked to Bitmain and its financing arm Antalpha, positioning Bitmain to exert substantial influence over Cango’s strategic decisions, including future mining expansion and AI compute initiatives.
Cango plans to deploy the proceeds across three priority areas: expanding its Bitcoin mining capacity, accelerating the development of its distributed AI compute platform, and strengthening its balance sheet. The company’s mining operations have grown to 50 EH/s, and the additional liquidity will help cover the high all‑in cost of $99,383 per BTC, which currently exceeds the network hashprice. The AI compute platform, powered by green energy, is a long‑term revenue driver that Cango views as an on‑ramp from mining to broader compute services.
Despite the capital infusion, Cango’s financial health remains strained. The company carries $407 million in debt, a gross profit margin of 16.55 %, and a net margin of –80.44 %. Its Altman Z‑Score of –0.02 signals financial distress, and the company’s 3‑year revenue growth rate is –39.3 %. The equity raise is therefore a critical liquidity event that may help the company weather ongoing cost pressures and volatile Bitcoin prices.
CEO Paul Yu emphasized that the financing “strengthens Cango’s position as a disciplined Bitcoin miner while providing the capital needed to pursue our energy‑driven AI compute ambitions.” He added that the company remains focused on cost discipline and operational leverage to improve margins as mining capacity scales.
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