Cango raises $75.5M after Bitcoin sale

Cango closed a $10.5 million equity investment and agreed to raise an additional $65 million as the Bitcoin miner restructures its balance sheet and accelerates its pivot toward AI and high-performance computing infrastructure.

The initial investment from Enduring Wealth Capital was completed through the issuance of seven million Class B shares at $1.50 each, boosting the investor’s voting power to 49.7% while its economic stake remains below 5%.

The company also entered agreements with entities owned by chairman Xin Jin and director Chang-Wei Chiu for roughly $65 million in Class A shares at $1.32 each, subject to customary closing conditions including New York Stock Exchange approval.

The capital raise follows Cango’s February 9 sale of 4,451 Bitcoin for about $305 million, with proceeds used to partially repay a Bitcoin-backed loan and reduce leverage.

Cango said the divestment supports a broader strategic shift to repurpose its grid-connected mining infrastructure into distributed compute capacity for the AI sector.

Shares were down roughly 7.7% at last check, as the wider mining sector remains under pressure from earnings misses and Bitcoin volatility, with several listed peers posting double-digit declines.

Despite recent turbulence, some mining stocks remain positive year-to-date, though the sector continues to grapple with compressed margins and a challenging price environment for Bitcoin.

At the time of reporting, Bitcoin price was $66,639.98.