SHANGHAI, April 29, 2025 /PRNewswire/ -- Cango Inc. (NYSE: CANG) ("Cango" or the "Company"), a rapidly expanding leader in Bitcoin mining, announced the initiation of coverage by Apollo Insights, an independent equity research firm. Apollo Insights initiated coverage on Cango on April 22, 2025, following the release of its equity research report and investment thesis titled "Cango Catapults Into Bitcoin Mining". Since entering the Bitcoin mining industry in November 2024, Cango has expanded its global footp ...

Company Overview - Cango Inc. (NYSE:CANG) primarily operates a leading Bitcoin mining business and has expanded into the crypto assets market since November 2024 [2] - The company has deployed its mining operations across strategic locations including North America, Middle East, South America, and East Africa [2] - Cango has continued to operate its automotive transaction service in China since 2010, aiming to simplify car purchases [2] Market Analysis - The expansion into the crypto assets market is driven by advancements in blockchain technology and the increasing prevalence of crypto assets [2] - Cango's move into Bitcoin mining represents a diversification strategy for the company [2] Research Firm Overview - Apollo Insights specializes in providing comprehensive equity research for micro- and small-cap companies, bridging the information gap between these companies and potential investors [3] - The firm delivers investor-grade reports that combine deep business analysis with rigorous financial models [3]

Core Viewpoint - Cango Inc. is transitioning from a car trading business to a bitcoin mining operation, highlighted by the recent $352 million sale of its China-based business to Ursalpha Digital Ltd. This move is part of a broader strategy to shift control of the company and adapt to the evolving market landscape [1][2][3]. Group 1: Business Transformation - Cango has agreed to sell its original China-based business for $352 million, with an upfront payment of $211 million and the remainder in installments based on tax obligations [2]. - The sale is a significant step in response to a proposal from Enduring Wealth Capital Ltd. to take control of Cango, indicating the company's serious consideration of this proposal [3]. - The company has been de-emphasizing its car trading business due to challenges in the Chinese market, including oversupply and weak demand, which led to a decline in revenue [6]. Group 2: Financial Performance - Cango invested $250 million in cryptocurrency mining equipment and began operations in November, generating 933.8 bitcoins and recording 653 million yuan ($90 million) in revenue from mining in the fourth quarter of last year, which accounted for over 80% of its total revenue during that period [7]. - The company's shares have doubled in value over the past six months since announcing its transition to bitcoin mining, reflecting positive market sentiment towards this strategic shift [8]. Group 3: Future Prospects - Following the sale of its China-based business, Cango may relocate its headquarters from Shanghai to another country to mitigate risks associated with its bitcoin mining operations, as cryptocurrency mining is illegal in China [5]. - The current control of Cango rests with co-founders Zhang Xiaojun and Lin Jiayuan, who hold 45% of the shares and 92.5% of the voting power, but their future roles remain uncertain if control is transferred to Enduring Wealth Capital [4].

Core Insights - Cango Inc. reported significant growth in Bitcoin production for March 2025, producing a total of 530.1 Bitcoins, which is a 12% increase from 472.7 Bitcoins in February 2025 [1][2] - The average daily Bitcoin production rose to 17.1 Bitcoins, up from 16.9 in the previous month [1] - As of the end of March, Cango's total Bitcoin holdings increased to 2,474.8 Bitcoins from 1,944.7 Bitcoins at the end of February [2] - The company's deployed hashrate remained stable at 32 EH/s, while the average operating hashrate improved to 30.3 EH/s, an increase from 29.7 EH/s in February [2] - The CEO of Cango expressed optimism about the company's operations and growth in the cryptocurrency market [3]

SHANGHAI, April 3, 2025 /PRNewswire/ -- Cango Inc. (NYSE: CANG) ("Cango" or the "Company") today announced that it has entered into definitive agreements to sell its existing business in the PRC (the "PRC Business") to Ursalpha Digital Limited, a company incorporated under the laws of British Virgin Islands (the "Purchaser"), for a total consideration of approximately US$351.94 million in cash (with initial payment of approximately US$210.64 million on the closing date and the remaining amount to be paid su ...

SHANGHAI, April 1, 2025 /PRNewswire/ -- Cango Inc. (NYSE: CANG) ("Cango" or the "Company") today announced its production update for crypto mining business in March 2025. Bitcoin Mining Update for March 2025 | Metrics | Mar 2025 1 | Feb 2025 1 | | --- | --- | --- | | Number of Bitcoins produced | 530.1 | 472.7 | | Average number of Bitcoins produced per day | 17.1 | 16.9 | | Total number of Bitcoins held 2 | 2,474.8 | 1,944.7 | | Total number of Bitcoins sold 2 | - | - | | Deployed hashrate 2 | 32 EH/s | 32 ...

SHANGHAI, March 27, 2025 /PRNewswire/ -- Cango Inc. (NYSE: CANG), a rapidly expanding leader in Bitcoin mining, today announced key highlights from its filed annual report, marked by a successful pivot towards cryptocurrency mining and significant operational milestones, including securing its position as the third-largest publicly traded miner globally and a 400% year-over-year revenue increase. Fourth Quarter & Full Year 2024 Financial PerformanceThe Company achieved total revenues of RMB668.0 million (US ...

Financial Performance - Total revenues for the year ended December 31, 2024, were RMB 804,489 thousand, a decrease from RMB 1,701,919 thousand in 2023, representing a decline of approximately 52.7%[49]. - The net income for the year ended December 31, 2024, was RMB 299,815 thousand, compared to a net loss of RMB 37,873 thousand in 2023, indicating a significant turnaround[49]. - The company reported third-party revenues of RMB 151,241 thousand from VIEs for the year ended December 31, 2024, compared to RMB 1,701,876 thousand in 2023, showing a decline of approximately 91.1%[49]. - Operating income for the year ended December 31, 2024, was RMB 178,894 thousand, a recovery from an operating loss of RMB 73,751 thousand in 2023[49]. - The Group's loan facilitation income decreased from RMB146.4 million in 2022 to RMB20.0 million in 2023, and further to RMB15.8 million (US$2.2 million) in 2024[91]. - The Group's leasing income decreased from RMB155.5 million in 2022 to RMB57.4 million in 2023, and further to RMB11.5 million (US$1.6 million) in 2024[91]. Cash Flow and Assets - Cash and cash equivalents as of December 31, 2024, totaled RMB 1,289,630 thousand, an increase from RMB 924,404 thousand as of December 31, 2023[52]. - Total assets as of December 31, 2024, were RMB 5,969,324 thousand, compared to RMB 6,266,834 thousand as of December 31, 2023, reflecting a decrease of approximately 4.7%[52]. - Total liabilities as of December 31, 2024, were RMB 1,882,694 thousand, a decrease from RMB 2,180,204 thousand as of December 31, 2023, indicating a reduction of about 13.7%[52]. - The company experienced a significant decrease in net cash provided by operating activities from RMB 1,026,026 thousand in 2023 to RMB (310,203) thousand in 2024[54]. - As of December 31, 2023, total current assets amounted to RMB 3,884,019 thousand, with cash and cash equivalents at RMB 1,020,604 thousand[53]. Dividends and Subsidiary Transactions - The company paid cash dividends of RMB1,871 million, nil, and nil to shareholders and ADS holders for the years ended December 31, 2022, 2023, and 2024[39]. - The company's ability to pay dividends is dependent on receiving distributions from its subsidiaries, which are subject to PRC laws and regulations[42]. - For the years ended December 31, 2022, 2023, and 2024, the company provided loans of nil, $6 million, and $14 million, net, respectively, to its subsidiaries[39]. - The company received repayments of $63 million, nil, and nil, net, respectively, for the same periods[39]. Regulatory and Compliance Issues - The company was identified as an SEC-identified issuer on May 26, 2022, due to its former auditor being unable to be inspected by the PCAOB[32]. - The PCAOB announced on November 30, 2023, that it had completed inspections on registered public accounting firms in mainland China and Hong Kong for 2023, allowing the company to avoid being identified as an SEC-identified issuer in 2024[33]. - The company is subject to restrictions on currency exchange, which may limit its ability to utilize cash generated in Renminbi for business activities outside of the PRC[45]. - The Group's financing guarantee company, Cango Financing, must ensure that its outstanding guarantee liabilities do not exceed ten times its net assets as per the Financing Guarantee Rules[102]. Market and Operational Risks - The automotive and mobility markets in China are still developing, with significant volatility affecting the company's business prospects[64]. - The Group's operational efficiency may be impacted by the need to enhance automation in the credit assessment process, which could lead to increased overdue ratios[82][83]. - The Group's business may be adversely affected by a general decline in car demand or failure to adapt its platform to new trends and requirements[72]. - The Group's relationships with dealers are not exclusive, and there is no assurance that dealers will maintain their participation on the Cango platform[67]. - The Group's financing transactions are secured by car collaterals, and a decrease in the residual value of these collaterals could adversely affect the Group's results of operations[111]. Cryptocurrency Operations - The company is expanding into the overseas crypto assets market, commencing crypto mining operations in November 2024[60]. - The company commenced its crypto mining operation in November 2024, expanding into the overseas crypto assets market, which introduces new operational risks[130]. - The company is focused solely on bitcoin mining, which poses risks if other crypto assets gain acceptance and bitcoin's value declines[133]. - The company relies on a third-party mining pool operator for bitcoin mining income, which increases operational risks if the operator experiences downtime or inaccuracies in reward distribution[140]. - The company faces risks from potential regulatory changes that could adversely affect the price and acceptance of bitcoin[134]. Internal Controls and Governance - The company concluded that its internal control over financial reporting was effective as of December 31, 2024[222]. - The independent registered public accounting firm confirmed that the company maintained effective internal control over financial reporting as of December 31, 2024[222]. - There are inherent limitations in all control systems, which may not prevent or detect all errors and fraud[223]. - Failure to comply with Section 404 of the Sarbanes-Oxley Act could lead to delays in producing accurate financial statements, potentially impacting the market price of the company's ADSs[224].

Core Viewpoint - Cango Inc. has extended the deadline for closing its proposed acquisitions of on-rack crypto mining machines to July 31, 2025, to allow for further assessment of potential revisions to the Purchase Agreement following a preliminary non-binding letter of intent from Enduring Wealth Capital Limited [1][2]. Group 1: Acquisition Details - The Company signed a Purchase Agreement for Share-Settled Transactions on November 6, 2024, which initially set a closing date of March 31, 2025 [1]. - The proposed acquisitions involve on-rack crypto mining machines with an aggregate hashrate of 18 Exahash per second [1]. - Cango completed a separate acquisition of on-rack crypto mining machines with a total hashrate of 32 Exahash for a purchase price of US$256 million in cash on November 15, 2024 [2]. Group 2: Business Operations - Cango Inc. primarily operates a leading Bitcoin mining business and has expanded its operations into the crypto assets market since November 2024 [3]. - The Company is headquartered in Shanghai, China, and has deployed its mining operations across strategic locations including North America, the Middle East, South America, and East Africa [3]. - In addition to its crypto operations, Cango has been providing automotive transaction services in China since 2010 [3].

SHANGHAI, March 17, 2025 /PRNewswire/ -- Cango Inc. (NYSE: CANG) ("Cango" or the "Company"), a leading Bitcoin mining company with an automotive transaction service in China, today announced that it has been included in the Bitwise Bitcoin Standard Corporations ETF (NYSE Arca: OWNB), launched by Bitwise Asset Management on March 11, 2025. The exchange-traded fund (ETF) tracks the Bitwise Bitcoin Standard Index, providing investors with exposure to forward-looking publicly traded corporations holding a minim ...