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Cango Inc. Announces Agreements to Acquire Crypto Mining Assets
CANGCango(CANG) Prnewswire·2024-11-06 14:20

Core Viewpoint - Cango Inc. has announced agreements to purchase on-rack crypto mining machines with a total hashrate of 50 Exahash per second for approximately US400million,indicatingastrategicexpansionintothecryptocurrencyminingsector[1][2].Group1:ProposedTransactions−ThepurchaseincludesaCash−SettledTransactionfor32EHfromBitmainforUS400 million, indicating a strategic expansion into the cryptocurrency mining sector [1][2]. Group 1: Proposed Transactions - The purchase includes a Cash-Settled Transaction for 32EH from Bitmain for US256 million in cash and Share-Settled Transactions for 18EH from Golden TechGen Limited, valued at US144millionthroughtheissuanceofapproximately145,658,192ClassAordinaryshares[1][2].−Uponclosing,GoldenTechGenLimitedwillownnomorethan20144 million through the issuance of approximately 145,658,192 Class A ordinary shares [1][2]. - Upon closing, Golden TechGen Limited will own no more than 20% of Cango's total outstanding shares, while all sellers will collectively own about 37.8% of the total outstanding shares before any warrant exercise [2][3]. - Cango has agreed to issue additional shares as a bonus if its market capitalization reaches US1,825 million within 30 months after the closing of the Share-Settled Transactions [2][3]. Group 2: Closing Conditions - The closing of the Cash-Settled Transaction is subject to customary conditions, including antitrust clearance in the U.S., while the Share-Settled Transactions require satisfactory performance of the mining machines and NYSE authorization [3]. - If the Cash-Settled Transaction fails due to antitrust issues, a deposit of US$25.6 million will be forfeited to Bitmain [3]. Group 3: Operational Plans - The mining machines are currently operational in data centers outside China, primarily in the U.S., and Cango plans to continue hosting them in these facilities [4]. - The company aims to generate significant revenue from crypto mining operations, potentially comprising the majority of total revenues before substantial growth in its existing business outside China [5]. Group 4: Company Overview - Cango Inc. is a leading automotive transaction service platform in China, established in 2010, focusing on connecting car buyers, dealers, and financial institutions [6]. - The company leverages technological innovation and big data to create an automotive supply chain ecosystem, enhancing its competitive advantage in the market [6].