Cango's Top Shareholder To Boost Stake To Nearly 50%

Core Viewpoint - Cango Inc. is undergoing a significant transformation from a car trading platform to a bitcoin mining and high-performance computing center, with its largest shareholder, Enduring Wealth Capital Ltd., increasing its voting stake to nearly 50% through a $10.5 million investment in newly issued Class B shares [1][4]. Group 1: Shareholder Changes - Enduring Wealth Capital Ltd. will purchase 7 million newly issued Class B shares for $10.5 million, equating to a price of $1.50 per share, which is an 8% premium over Cango's previous closing price of $1.39 [2]. - Following this investment, EWCL's voting rights will increase from 36.68% to 49.61%, granting it near-majority control of Cango [3]. - Cango's current major stakeholders include Golden TechGen Ltd., which holds 12.23% of voting rights, and co-founders Zhang Xiaojun and Lin Jiayuan, whose voting rights have decreased to about 12% [8]. Group 2: Business Transformation - Cango is shifting its focus from a China-based car trading platform to bitcoin trading and cryptocurrency mining facilities, which are similar to data centers for AI applications [4]. - The company aims to reduce its reliance on bitcoin mining, which has led to volatility in its financial metrics, and transition towards operating high-performance computing centers [5][6]. - The transition involves replacing its executive and shareholding teams with individuals experienced in the financial sector, including new management from EWCL, which is associated with Antalpha Ventures [7].