Chinese Firm Cango Sells Auto Division for $351.94 Million to Boost Bitcoin Mining

On April 3, 2025, Cango Inc., a Chinese company listed on the NYSE as CANG, revealed plans to sell its China based auto business for $351.94 million in cash. This deal, which kicks off with a $210.64 million payment at closing and follows with additional sums based on tax filings and loan risk reductions, marks a major turning point for Cango. Originally a leader in China’s auto trading and financing scene since 2010, the company is now doubling down on its Bitcoin mining ambitions.

This shift began taking shape after a March 14, 2025, proposal from Enduring Wealth Capital Limited (EWCL) suggested EWCL take control of Cango while offloading its China auto operations. After review by a special committee and board approval, Cango is moving forward, aiming to use the sale’s proceeds to fuel its crypto growth. For Bitcoin fans, this is a loud signal that Cango sees Bitcoin mining as its future, especially after its recent push into the digital asset space.

Supercharging Bitcoin Mining Plans

The sale’s success depends on shareholder approval at a forthcoming meeting and a restructuring to split Cango’s China auto business from its global ventures, including Bitcoin mining and auto trading outside China. Once finalized, Cango plans to shed its regulatory ties to China’s securities authority, a move that could streamline its focus on crypto. If issues like regulatory pushback or a stalled side deal involving co-founders Xiaojun Zhang and Jiayuan Lin selling shares to EWCL crop up within three months of closing, Ursalpha can back out, with Cango repurchasing the auto division at the paid price.

Cango’s crypto journey accelerated in November 2024 when it snapped up Bitcoin mining machines with an 18 Exahash per second capacity through a share-based deal. To keep that purchase on track, Cango tweaked terms with Golden TechGen Limited, the main seller, and expects more adjustments to support this sale. With mining operations already running in North America, the Middle East, South America, and East Africa, Cango is leveraging blockchain trends and crypto’s rising popularity.

The $351.94 million cash injection could turbocharge their Bitcoin mining operational setup, boosting its ability to churn out Bitcoin in a fiercely competitive field. While it keeps some auto trading abroad, selling its China auto arm, long tied to car sales and financing, frees up resources for crypto. This mirrors a wider wave of companies eyeing Bitcoin as a growth engine.