Core Viewpoint - Cango Inc. has announced the third amendment to its Purchase Agreement for acquiring on-rack crypto mining machines, which will involve the issuance of Class A ordinary shares to the sellers, reflecting a significant strategic move in the crypto mining sector [1][2]. Summary by Sections Purchase Agreement and Amendments - The Purchase Agreement was initially signed on November 6, 2024, with subsequent amendments on March 26, 2025, and April 3, 2025. The latest amendment adjusts the number of shares to be issued to sellers, totaling 146,670,925 Class A ordinary shares at closing, with an additional 97,780,616 bonus shares contingent on a triggering event [2]. Impact of PRC Business Disposal - The Third Amendment includes changes due to the sale of the Company's PRC business, completed on May 27, 2025. The requirement to issue additional shares (Adjustment Shares) is now based on a threshold of approximately US$7.0 million reduction in the total consideration from the PRC Business Disposal [3]. Ownership Structure Post-Transaction - Upon closing of the Share-Settled Transactions, Golden TechGen Limited (GT) will own approximately 18.79% of the Company's total outstanding shares, while all sellers will collectively own about 41.38% before any bonus or adjustment shares are issued [4]. Definitive Agreement and Voting Power - A definitive agreement was signed on June 2, 2025, involving the Company's co-founders and their holding companies. Post-transaction, Enduring Wealth Capital Limited (EWCL) will hold approximately 2.82% of total outstanding shares and 36.74% of voting power, while the founders will hold 18.54% of shares and 12.07% of voting power [5]. Change of Control at GT - GT has undergone a change of control, with new shareholders now holding equal voting power. Mr. Ning Wang, a finance professional with extensive experience, will exercise director nomination rights previously held by the former owner [6]. Closing Conditions - The closing of the Share-Settled Transactions is subject to certain conditions that are still pending. The Company is actively working towards satisfying these conditions [7]. Company Overview - Cango Inc. is primarily engaged in the Bitcoin mining business, with operations across various regions including North America and East Africa. The Company also operates an online international used car export business, diversifying its portfolio in response to advancements in blockchain technology and the growing adoption of digital assets [8].

Core Viewpoint - Cango Inc. has reported a production update for its Bitcoin mining business, showing an increase in the number of Bitcoins produced in May 2025 compared to April 2025 [1][2]. Group 1: Production Metrics - The number of Bitcoins produced in May 2025 was 484.5, an increase from 470.0 in April 2025, reflecting a growth of approximately 3.2% [2]. - The average number of Bitcoins produced per day in May 2025 was 15.63, slightly down from 15.67 in April 2025 [2]. - The total number of Bitcoins held by the company at the end of May 2025 was 3,429.3, up from 2,944.8 at the end of April 2025, indicating a significant increase of about 16.4% [2]. Group 2: Hashrate Metrics - The deployed hashrate remained stable at 32 EH/s for both May and April 2025 [2]. - The average operating hashrate in May 2025 was 29.86 EH/s, a slight decrease from 29.94 EH/s in April 2025 [2]. Group 3: Company Overview - Cango Inc. is primarily focused on Bitcoin mining, with operations across North America, the Middle East, South America, and East Africa [3]. - The company entered the crypto asset space in November 2024, motivated by advancements in blockchain technology and the growing adoption of digital assets [3]. - In addition to its crypto operations, Cango continues to run an online international used car export business through AutoCango.com [3].

Core Viewpoint - Cango Inc. has entered into a securities purchase agreement to sell 10 million Class B ordinary shares to Enduring Wealth Capital Limited for a total of $70 million, with certain conditions attached to the payment [1][2]. Group 1: Transaction Details - The agreement involves the sale of shares by the co-founders and their holding companies to EWCL, with $15 million payable upon the satisfaction of specific conditions [1]. - The company will undertake corporate actions to ensure that the shares acquired by EWCL remain Class B ordinary shares, which carry 20 votes per share [3]. - The founders will convert their remaining Class B shares into Class A shares, which have one vote per share [3]. Group 2: Shareholding and Voting Power - If the Share-Settled Transactions are not completed, EWCL will hold approximately 4.81% of the total outstanding shares and 50.28% of the voting power, while the founders will hold 31.63% of the shares and 16.52% of the voting power [3]. - If the Share-Settled Transactions are completed, EWCL's shareholding will decrease to approximately 2.83% with 36.81% voting power, and the founders will hold 18.59% of the shares and 12.09% of the voting power [3]. Group 3: Corporate Governance - The execution of the agreement has been approved by the company's audit committee and board of directors [4]. - The company is required to obtain shareholder approval for the necessary corporate actions to ensure compliance with the agreement [4]. - An extraordinary shareholders meeting is expected to be convened to seek this approval [4]. Group 4: Business Operations - Cango Inc. is primarily engaged in the Bitcoin mining business, with operations across North America, the Middle East, South America, and East Africa [6]. - The company also operates an online international used car export business through AutoCango.com, facilitating access to vehicle inventory from China [6].

Core Viewpoint - Cango Inc. is transitioning away from its roots in Mainland China by selling its China-based business and considering relocating its headquarters to regions more favorable for cryptocurrency operations, such as Singapore, Hong Kong, or the U.S. [2][3][4] Company Transition - Cango has completed the sale of its China business, including car-trading and financing services, in a deal valued at $352 million [8][10] - The company is undergoing a significant board overhaul, with four of its seven members departing and two new members with strong financial backgrounds joining [5][12] - Cango's shift to bitcoin mining began with a $256 million purchase of bitcoin mining machines, aiming to increase its capacity to 50 EH [6][8] Financial Performance - Prior to its transition, Cango's revenue had declined to 27 million yuan ($3.8 million) in the third quarter of the previous year [7] - The company reported a significant increase in cash and short-term investments, which reached 7.7 billion yuan at the end of March, up from 2.5 billion yuan three months earlier [14] Market Position - Cango's stock rose by 6.1% following the announcement of its transition, and it has more than tripled since the initial disclosure of its move into bitcoin [13] - The company is no longer classified as a "China concept stock," which removes it from the jurisdiction of the China Securities Regulatory Commission [4][9] Future Prospects - Potential new headquarters locations include Singapore, which is emerging as a cryptocurrency hub, and Hong Kong, which allows cryptocurrency trading [3][15] - The U.S. is also a viable option, as Cango conducts a significant portion of its bitcoin mining operations there [15][16]

Core Viewpoint - Cango Inc. has divested its business in the PRC for approximately US$351.94 million, allowing the company to focus on expanding its leadership in the global Bitcoin mining industry [1][2][3] Group 1: Strategic Transaction - The divestment of the PRC Business was finalized on May 27, 2025, and is valued at approximately US$351.94 million in cash [1] - This strategic move enables Cango to concentrate its resources on Bitcoin mining in key regions such as North America, the Middle East, South America, and East Africa [2][3] Group 2: Company Restructuring - Following the divestment, Cango has restructured its Board of Directors by appointing two new members with expertise in Fintech, AI, Web 3.0, and global capital markets [4] - The enhanced board composition aims to reinforce Cango's commitment to innovation and strengthen its leadership position in the digital finance landscape [4] Group 3: Future Plans - Cango plans to apply to the China Securities Regulatory Commission to terminate its "China Concept Stock" status after the divestment [5] - The company aims to aggressively pursue growth objectives and enhance shareholder value through this strategic realignment [3]

Core Viewpoint - Cango Inc. reported solid operational metrics in Q1 2025, with Bitcoin mining revenue meeting expectations and a positive outlook for future growth despite a temporary adjusted EBITDA loss due to Bitcoin price volatility and legacy business expenses [1][2]. Financial Performance - Cango's Q1 2025 Bitcoin mining revenue was RMB 1,046 million, aligning with estimates [2]. - The adjusted EBITDA loss in Q1 2025 was primarily due to Bitcoin price fluctuations and costs from the legacy auto business [2]. - The full-year 2025 revenue estimate was increased to RMB 5,173 million, reflecting higher Bitcoin price assumptions, partially offset by increased network difficulty [2]. Operational Metrics - Cango's deployed hash rate reached 32 EH/s by the end of Q1 2025, with an industry-leading productivity of 16.6 Bitcoin mined per EH/s in March 2025 [3]. - The company mined a total of 1,541 Bitcoins in Q1 2025 and held 2,475 Bitcoins as of March 31, 2025, with no sales during the quarter [3]. Future Growth Projections - Apollo Insights projects significant hash rate growth, estimating Cango will exit fiscal 2025E with 42 EH/s (+10 EH/s year-over-year) and fiscal 2026E with 54 EH/s (+12 EH/s year-over-year) [4]. - This growth includes a planned acquisition of 18 EH/s expected to be completed by the end of July 2025 [4]. Strategic Initiatives - Cango aims to secure more favorable mining contracts, explore self-operation of its mining equipment, invest in low-cost, clean energy projects in the Middle East and Australia, offer various digital financial services, and develop an "asset light" used car platform [5].

Core Points - Cango Inc. announced that all resolutions presented at its extraordinary general meeting on May 16, 2025, were passed with over 99.3% approval from total votes cast [1] - The resolutions included the approval for Cango to sell its existing business in the PRC to Ursalpha Digital Limited for approximately US$351.94 million in cash [2] Company Overview - Cango Inc. primarily operates a leading Bitcoin mining business, with operations in North America, the Middle East, South America, and East Africa [4] - The company expanded into the crypto assets market in November 2024, driven by advancements in blockchain technology and the increasing prevalence of crypto assets [4] - Cango has been operating automotive transaction services in China since 2010, aiming to simplify car purchases [4]

Financial Performance - Total revenue reached $145.2 million, a 1600% increase compared to RMB64.4 million in the same period of 2024[11] - BTC mining business generated revenue of $144.2 million in Q1 2025[11] - Adjusted EBITDA was $3.8 million for the quarter[11] - The company's liquidity, including cash, cash equivalents, and short-term investments, stood at $347.4 million as of March 31, 2025[11] - Gross Margin is 9.4%[43] BTC Mining Operations - Mined a total of 1,541 BTC during the quarter, increasing the company's reserve to 2,474.8 BTC by quarter end[11] - The average cash cost to mine BTC, excluding depreciation, was $70,602.1 per BTC in the quarter[11] - Deployed hashrate reached 32 EH/s as of Q1 2025, representing 4% of global hashrate[18] - The value of total BTC holdings (HODL) was $204 million as of Q1 2025[18] - Average fleet efficiency was 21.5 J/TH in Q1 2025[18]

Revenue Performance - Total revenues for Q1 2025 were RMB 1.1 billion (US$ 145.2 million), a significant increase from RMB 64.4 million in Q1 2024, primarily driven by the Bitcoin mining business[5] - Total revenues for Q1 2025 reached RMB 1,053,883,166, a significant increase from RMB 64,422,494 in Q1 2024, primarily driven by bitcoin mining income[29] - Bitcoin mining income accounted for RMB 1,046,266,997 in Q1 2025, compared to zero in Q1 2024, highlighting a major shift in revenue sources[29] - Revenue from automotive trading-related income was RMB 7.6 million (US$ 1.0 million), down from RMB 64.4 million in the same period of 2024[8] Bitcoin Mining Operations - The Bitcoin mining operations generated revenues of RMB 1.0 billion (US$ 144.2 million) with a total of 1,541 Bitcoins mined during the quarter, up from 933.8 Bitcoins in the previous quarter[4][7] - The average cost to mine Bitcoin was US$ 70,602.1 per Bitcoin in Q1 2025[5] - The company aims to increase its hashrate from 32 EH/s to approximately 50 EH/s by the end of July 2025[15] Financial Performance - Adjusted EBITDA for Q1 2025 was RMB 27.6 million (US$ 3.8 million), compared to RMB 108.4 million in the same period of 2024[14] - Net loss for Q1 2025 was RMB 207.4 million (US$ 28.6 million), compared to net income of RMB 90.0 million in Q1 2024[13] - Non-GAAP adjusted EBITDA for Q1 2025 was RMB 27,554,022, a decrease from RMB 108,416,223 in Q1 2024, reflecting operational challenges[30] - Earnings per ADS attributable to ordinary shareholders for Q1 2025 was a loss of RMB 2.00, compared to a profit of RMB 0.85 in Q1 2024[29] - The company reported a total comprehensive loss of RMB 245,665,460 in Q1 2025, compared to a comprehensive income of RMB 110,921,714 in Q1 2024[29] Assets and Liabilities - The total balance of cash and cash equivalents and short-term investments was RMB 2.5 billion (US$ 347.4 million) as of March 31, 2025[5] - Total current assets increased to RMB 4,417,499,459 as of March 31, 2025, up from RMB 3,458,107,713 as of December 31, 2024[28] - Total liabilities rose to RMB 3,187,747,227 as of March 31, 2025, compared to RMB 1,882,693,687 as of December 31, 2024, indicating increased financial obligations[28] - The company’s total assets increased to RMB 7,055,060,830 as of March 31, 2025, up from RMB 5,969,323,559 as of December 31, 2024[28] - The company’s cash and cash equivalents rose to RMB 2,515,712,358 as of March 31, 2025, compared to RMB 1,289,629,981 as of December 31, 2024[28] Share Repurchase - The company has repurchased 996,640 ADSs for approximately US$ 1.7 million as part of its share repurchase program[16] Financing Transactions - The total outstanding balance of financing transactions facilitated by the company was RMB 2.6 billion (US$ 358.4 million) as of March 31, 2025, with a decrease in credit risk exposure[5]

Financial Data and Key Metrics Changes - In Q1 2025, total revenue reached USD 145 million, with USD 144 million coming from Bitcoin mining operations, marking a significant increase compared to the previous year [4][11] - Gross profit for the quarter was USD 13.61 million, while operating loss was recorded at RMB 155.5 million, primarily due to a decline in Bitcoin prices [4][14] - As of March 31, 2025, total cash, cash equivalents, and short-term investments amounted to RMB 2.5 billion, providing solid support for future business expansion [4][15] Business Line Data and Key Metrics Changes - Revenue from the Bitcoin mining business in Q1 2025 was USD 144 million, with 15.41 Bitcoins mined during the quarter [4][12] - Revenue from automotive trading related income decreased to RMB 64.4 million compared to the same period in 2024 [12] - The company maintained a total computing power of 32 exahashes per second, accounting for approximately 4% of the global average hash rate [5][6] Market Data and Key Metrics Changes - The average monthly effective hash rate consistently exceeded 30 exahashes per second, with a coin yield of 16.6 Bitcoins per exahash, placing the company among the top three publicly listed mining companies [7] - The average power efficiency for the quarter was 21.62 per terahash, indicating strong operational efficiency [7] Company Strategy and Development Direction - The company is committed to a "mine and hold" strategy, focusing on self-mining and long-term holding of Bitcoin [8] - Plans include optimizing existing computing power resources and pursuing mergers and acquisitions to scale operations [8] - The traditional automotive business, AutoCango, aims to connect China's used car market with overseas buyers, enhancing its global presence [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in Bitcoin's long-term value appreciation potential and the stability of its supply [8] - The company is closely monitoring market developments and adjusting strategies to seize emerging opportunities [19] - Future strategic direction includes optimizing mining operations, enhancing efficiency, and exploring new market opportunities [24] Other Important Information - The company has launched a global energy strategy to address high electricity costs, focusing on renegotiating hosting agreements and exploring partnerships in low-cost clean energy projects [23] - The company plans to prioritize debt financing over equity financing due to its low debt-to-equity ratio [29] Q&A Session Summary Question: What is your view on the trends in the cryptocurrency market so far? - Management believes the cryptocurrency market presents both opportunities and challenges, with an increasing role for cryptocurrencies as technology advances [18] Question: How is the company going to respond to increasing challenges from computing power and mining difficulty? - The company will optimize existing mining operations and expedite the delivery of additional computing power [19] Question: Can you provide more details on the reasons behind the declines in April metrics? - The decline was mainly due to a significant increase in global network hash rate and a rise in mining difficulty [21] Question: Do you see more pressure from increasing power costs? - Yes, the company is experiencing high electricity costs but is refining its cost structure through a global energy strategy [23] Question: How does the company plan to balance or diversify its business lines? - The company remains focused on Bitcoin mining but is confident in the potential of its used car export business and plans to explore additional opportunities [27] Question: Do you have any plans for equity financing or other financing plans? - The company has sufficient liquidity and plans to prioritize debt financing over equity financing [29]