Enduring Wealth Capital Limited (EWCL), an entity associated with Bitmain and its financial arm Antalpha, has agreed to subscribe to 7 million new Class B common shares of Cango for $10.5 million in cash. The implied price in the agreement is $1.50 per share, with the deal expected to close in January subject to customary conditions, including approval from the New York Stock Exchange. This transaction comes amid a challenging mining economy and rapid capacity expansion for Cango.
Details of the Deal Between Bitmain and Cango
Under the terms of the agreement, EWCL will acquire 7 million new Class B shares for $10.5 million, pricing each share at $1.50 as formalized in the executed agreement. The closing is scheduled for January and depends on standard conditions, including NYSE approval. The transaction is formally structured through EWCL — an entity linked in the press to Bitmain and Antalpha.
Changes in Cango’s Ownership Structure
Following the placement, EWCL will increase its stake in Cango’s issued shares from approximately 2.81% to 4.69%, reflecting a rise in direct ownership. Since Class B shares carry 20 votes each, EWCL’s influence on shareholder voting will grow more significantly: its voting stake will increase from about 36.68% to roughly 49.61%, approaching effective control over voting rights. Specific changes in operational management will depend on further decisions by the board and shareholders.
Cango’s History and Current Operations
Cango previously operated as an auto financing platform in China but exited that business and fully transitioned to Bitcoin mining outside of China. This year, the company significantly expanded its capacity: an additional 18 EH/s hash rate purchase, financed by Antalpha, brought total capacity to 50 EH/s. These changes have transformed Cango into a specialized miner with large-scale infrastructure.
Economic Challenges for Cango
The investment arrives at a time when Cango’s mining economics remain tight: as of Q3, the company’s fleet had a hashcost of about $39/PH/s, a figure presented excluding corporate and financial expenses. Since this level exceeds the current network hash price, Cango is likely mining at gross losses before overhead, increasing the importance of external financing to sustain operations. Scaling up boosts mining share but also heightens reliance on external investments and funding.
Why This Matters
For miners with small fleets ranging from a few to hundreds of devices, changes in Cango’s ownership structure do not directly alter everyday mining conditions but signal a trend: major players use structured investments to strengthen control over public miners. This is important because such deals affect access to equipment, financing, and strategic resources in the industry, especially for rapidly scaling companies. Consequently, the mining market may find it harder to assess the independence of public miners and their influence on equipment pricing and supply.
What to Do?
- Review cash reserves and fuel/electricity backup: tightening finances among major miners may cause short-term fluctuations in equipment and service markets; having reserves will help weather instability.
- Monitor hashcosts: compare your average hashcost with public benchmarks like Cango’s to gauge your fleet’s profitability under current conditions; this aids decisions on downsizing or upgrading equipment.
- Assess contract and supply risks: if reliant on large operators or suppliers, note that changes in control may impact supply terms and support; diversify suppliers where possible.
- Follow relevant updates and reports: subscribe to company news and public disclosures to promptly respond to changes in management and financing of miners you use.
For more related content, see materials on previous investments in Cango and the miner’s operational results to get a broader picture of the company’s development. For example, one article details Cango receiving $10.5 million from a major shareholder, while another covers recent BTC mining volumes by the company Cango received $10.5M from a major shareholder and Cango mined 125.8 BTC.