EWCL Tightens Grip on Cango with $10.5M Investment, Nears 50% Control

DALLAS, Texas – December 29, 2025

Cango Inc. (NYSE: CANG) announced today that its largest shareholder, Enduring Wealth Capital Limited (EWCL), will inject another $10.5 million into the company, a move that will push EWCL’s voting power to the brink of an outright majority. The deal underscores a significant consolidation of control as Cango navigates a high-stakes transformation from its automotive roots into a global Bitcoin mining and AI computing powerhouse.

Pursuant to the agreement, Cango will issue 7,000,000 new Class B ordinary shares to EWCL at a price of $1.50 per share. While this only increases EWCL's total ownership from 2.81% to 4.69%, the unique structure of Cango's Class B shares, which carry 20 votes each, will catapult EWCL’s voting power from 36.68% to a commanding 49.61%. The transaction, expected to close in January 2026 pending NYSE approval, marks a pivotal moment in EWCL's escalating influence over Cango's strategic direction.

A Vote of Confidence in a Radical Pivot

The investment is being framed by Cango's leadership as an endorsement of its ambitious new strategy. Since entering the digital asset space in late 2024, the company has rapidly built a formidable Bitcoin mining operation spanning over 40 sites globally. This latest capital infusion is earmarked to further that expansion.

Funds will be used to enhance hashrate efficiency, upgrade the company's mining fleet, and pursue strategic acquisitions of mining assets. This aligns with a broader vision to leverage its energy infrastructure for more than just cryptocurrency. Cango has been vocal about its goal to establish a "global, distributed AI compute grid powered by green energy," viewing its mining operations as a practical launchpad for entering the booming AI infrastructure market.

This strategic direction has been heavily influenced by EWCL, which began asserting its intentions as early as March 2025 with a non-binding letter to gain control and restructure Cango's board. A subsequent $70 million funding deal in June 2025, followed by this latest $10.5 million investment, confirms a deep alignment between the investor and the company's new trajectory. The capital is not only for Bitcoin mining but also for the parallel development of Cango's nascent energy and AI compute pilot projects, which include a data center in Georgia, USA, and green energy initiatives in Oman and Indonesia.

The Consolidation of Control

The deal's structure shines a spotlight on Cango's corporate governance and the immense power wielded by its Class B shares. With its voting power swelling to 49.61%, EWCL will have near-total control over board appointments, major strategic decisions, and capital allocation, effectively sidelining the influence of other minority shareholders.

This concentration of power is the culmination of a deliberate, year-long strategy by EWCL. The investment management firm has methodically increased its stake and influence, steering Cango away from its legacy used car export business, AutoCango.com, which has struggled amid persistent market weakness. For EWCL, the prize appears to be Cango's potential in the high-growth digital infrastructure space.

For other investors, the move is a double-edged sword. On one hand, a single, powerful shareholder with a clear vision can provide decisive leadership and stability, eliminating the potential for boardroom conflicts that could derail a complex turnaround. On the other hand, it raises classic governance concerns about whether the interests of the controlling shareholder will always align with those of the broader market. The significant dilution of voting power for holders of Class A shares is an immediate and tangible consequence of the transaction.

Balancing Bitcoin, AI, and a Legacy Business

Cango currently presents a complex identity to the market: a rapidly growing Bitcoin miner, an aspiring AI compute provider, and the operator of a legacy car export platform. The new investment from EWCL is set to accelerate the shift in focus squarely onto the first two pillars.

The company's performance in Bitcoin mining has been impressive on the surface. By the third quarter of 2025, mining revenue surged to $220.9 million, making up the vast majority of the company's $224.6 million in total revenue. Cango mined over 1,930 BTC in the quarter and, as of November 2025, held nearly 7,000 Bitcoins on its balance sheet while maintaining a deployed hashrate of 50 EH/s.

However, this aggressive growth has come at a cost. The company reported a staggering negative free cash flow of $252.44 million and carried a heavy debt burden of over $407 million as of November. The capital-intensive nature of Bitcoin mining, coupled with the volatility of the cryptocurrency's price, creates significant financial risk.

It is this dynamic that makes the pivot toward AI compute so critical. The AI infrastructure market is projected to grow at over 50% annually, offering potentially higher and more stable margins than Bitcoin mining. Industry trends show other miners are making a similar move, leveraging their data center expertise and energy contracts to host high-demand GPUs. Cango's "asset-light" strategy for GPU leasing is an attempt to capture this upside without the massive upfront capital expenditure of building its own AI hardware fleet, a strategy likely championed by its financially-minded controlling shareholder.

Valuation, Volatility, and Analyst Outlook

The market's reaction to the announcement has been mixed, reflecting the company's blend of high potential and high risk. While CANG stock saw a pre-market surge of over 4% on the news, it closed the trading day on December 29th with a decline, with some data suggesting a drop of over 6%. This volatility highlights investor uncertainty, weighing the "powerful vote of confidence" from EWCL against the company's challenging financials.

Analysts, however, appear to be looking past the short-term turbulence. H.C. Wainwright has maintained a "Buy" rating on the stock with a $3.00 price target, double the $1.50 per-share price of EWCL's investment. More bullishly, Greenridge Capital recently initiated coverage with a "Buy" rating and a $4.00 price target, citing Cango's strong position and strategic entry into the high-performance computing market.

These analysts seem to agree with EWCL's thesis: that Cango is currently undervalued and that its pivot, though costly and complex, positions it to capitalize on the convergence of energy, digital assets, and artificial intelligence. The $1.50 share price, in this context, could be seen less as a reflection of current market value and more as a strategic price for securing near-absolute control over a company on the cusp of a major transformation. The success of this bet now rests on Cango's ability to execute its ambitious roadmap under the firm hand of its dominant shareholder.