Cango Inc. Cedes Control as Investor Fuels Aggressive Crypto & AI Pivot

NEW YORK, NY – December 29, 2025 – Cango Inc. (NYSE: CANG) announced today it has secured a new $10.5 million equity investment from its principal shareholder, Enduring Wealth Capital Limited (EWCL). The deal, however, signifies much more than a simple capital injection; it marks the culmination of a year-long strategic power play that pushes EWCL’s voting power to nearly 50%, effectively cementing its control over the company’s dramatic pivot from automotive services to Bitcoin mining and artificial intelligence infrastructure.

The transaction involves EWCL subscribing to 7,000,000 newly issued Class B ordinary shares at a price of $1.50 per share, a slight premium over Cango's recent trading price of around $1.39. While this increases EWCL’s direct shareholding to a modest 4.69%, the impact on governance is profound. As the sole holder of Cango's high-vote Class B shares, which carry 20 votes apiece, EWCL will see its total voting power surge from approximately 36.7% to a commanding 49.61%. This move all but finalizes a strategic overhaul that has rapidly reshaped Cango’s identity and future.

A Calculated Corporate Takeover

The groundwork for today’s announcement was laid throughout 2025 in a series of deliberate maneuvers by EWCL, a British Virgin Islands-based investment firm. The campaign began in earnest in March when EWCL submitted a non-binding proposal to Cango’s board. The letter outlined a clear intent: to gain control of the company and steer it away from its legacy business in China towards the burgeoning global crypto-mining sector.

EWCL’s proposal was conditional on several major changes. It called for the disposal of Cango’s operations within the People's Republic of China, a move Cango’s board executed on May 27, 2025. The firm also required that Cango's co-founders, Xiaojun Zhang and Jiayuan Lin, sell a substantial portion of their controlling Class B shares to EWCL, convert their remaining holdings to single-vote Class A shares, and resign from the board and all senior management positions.

By July 23, 2025, the plan was largely realized. The co-founders sold 10 million Class B shares to EWCL for $70 million and stepped down from their roles. This transaction alone handed EWCL its initial 36.7% voting control. In their place, Peng Yu, a key decision-maker for EWCL, was appointed as Cango's new Chief Executive Officer and Director, aligning the company's leadership directly with its new controlling shareholder's vision.

This latest $10.5 million investment, pending NYSE approval expected in January 2026, serves as the final step in this calculated consolidation of power, providing EWCL with near-absolute authority to direct Cango’s ambitious and capital-intensive new strategy.

From Used Cars to Crypto Rigs

Cango's transformation has been nothing short of breathtaking in its speed and scope. The company, which once operated primarily as an automotive transaction service platform in China, officially entered the digital asset space in November 2024. In the seven months following its full pivot in May 2025, Cango has emerged as one of the world's largest Bitcoin miners.

The company now boasts a formidable operational footprint, with over 40 mining sites spread across North America, the Middle East, South America, and East Africa. It has rapidly deployed over 50 exahashes per second (EH/s) of mining capacity, a significant portion of the global total. An acquisition in June alone contributed 18 EH/s to this capacity. Furthermore, Cango has built a substantial treasury, holding more than 4,000 Bitcoins.

While this radical shift has become the company's primary focus, it still maintains a toehold in its old industry through AutoCango.com, an online platform for international used car exports. However, all investor communication and strategic initiatives now center on its future as a digital infrastructure powerhouse.

Forging a Digital Infrastructure Future

EWCL's investment is intended to fuel a vision that extends beyond just mining cryptocurrency. Cango is actively positioning itself as a developer of an integrated, global infrastructure platform designed to power the future digital economy. This includes two key strategic initiatives that are already in pilot phases: integrated energy solutions and distributed AI computing.

The company aims to move upstream in the energy sector, securing dedicated power resources—with a stated preference for green energy—to support its vast mining operations sustainably and cost-effectively. This vertical integration could provide a significant competitive advantage in the energy-intensive mining industry.

Simultaneously, Cango is exploring how to leverage its extensive, geographically distributed computing infrastructure for AI applications. The goal is to create a high-performance computing platform capable of supporting the massive data processing needs of the AI industry, creating a synergistic relationship between its crypto and AI ambitions.

A High-Stakes Financial Gamble

Despite the aggressive expansion and the clear confidence shown by EWCL, Cango's path is fraught with financial risk. The $10.5 million cash infusion is critical for a company that is reportedly burning through cash at a rapid pace. According to recent financial data, Cango carries a significant debt burden of approximately $407 million, and its gross profit margins, at around 16.55%, reflect the operational challenges of its capital-intensive new ventures.

Market analysts appear divided but cautiously optimistic. Several have issued "Buy" ratings with price targets of $3.00 to $4.00, suggesting significant upside from its current level. They point to the company's impressive revenue growth over the past year and its strategic positioning in high-growth sectors.

However, the volatility of the cryptocurrency market, coupled with the company's high debt and cash burn rate, represents a substantial gamble. The success of Cango's transformation now rests heavily on EWCL's deep pockets and strategic direction. The investment solidifies control and provides necessary fuel, but it also ties the company's fate to a high-risk, high-reward strategy that will require flawless execution and favorable market conditions to succeed.