Cango Inc. (CANG) is getting cozy with its largest shareholder. The company announced Monday that Singapore-based Enduring Wealth Capital Ltd. will buy $10.5 million worth of newly issued Class B shares, a move that will hand EWCL near-majority voting control of the bitcoin miner.
Here's how the math works: EWCL will purchase 7 million Class B shares at $1.50 each, an 8% premium to Cango's Friday closing price of $1.39. The market wasn't exactly thrilled about the news—shares slipped to $1.36 on Monday following the announcement.
But the real story is in the voting structure. Each Class B share packs super voting rights equal to 20 Class A shares. So while EWCL's actual ownership stake will grow modestly from 2.81% to 4.69% of total shares, its voting power will jump dramatically from 36.68% to 49.61%. That's near-majority control without anywhere close to majority ownership—the kind of dual-class share structure that either makes perfect sense or drives governance purists crazy, depending on who you ask.
The deal is expected to close next month, marking the latest chapter in what's been a wild transformation story for Cango. Just over a year ago, the company was operating a China-focused car-trading platform. Then it decided to pivot into bitcoin mining. Because why not?
Since then, Cango has been reshaping itself into something resembling a cryptocurrency mining operation with ambitions to become a high-performance computing center operator. The two businesses share more DNA than you might think. Both require massive amounts of energy—often generated on-site through solar panels—to power the intense computing operations needed for mining crypto or running AI applications.
Cango has made no secret of wanting to diversify away from its heavy bitcoin reliance toward the steadier business of operating HPC data centers. The current crypto focus has created some headaches: rising costs per bitcoin as competition in mining intensifies, and declining values for its bitcoin holdings as the cryptocurrency has pulled back recently. Volatility, in other words, has been a feature rather than a bug.
The company has also been steadily overhauling its leadership and investor base to match its new direction. Out with the old car business expertise, in with financial sector veterans. EWCL, which is tied to Singaporean firm Antalpha Ventures, represents exactly that kind of new money flowing into the company.
It's not alone. Golden TechGen Ltd. controlled 12.23% of voting rights after an earlier restructuring announced in June. Meanwhile, Cango co-founders Zhang Xiaojun and Lin Jiayuan remain significant stakeholders, though their voting rights dropped to around 12% after the June changes and will decline further once EWCL's latest purchase closes.
What you're watching here is a company in the middle of a complete reinvention—not just its business model, but its entire power structure. Whether that transformation from Chinese car platform to bitcoin miner to potential AI infrastructure play actually works out remains to be seen. But EWCL is clearly betting $10.5 million that it will.
