Enduring Wealth Capital Limited (EWCL), an entity closely linked to Bitmain, is increasing its investment in Cango as the U.S.-listed bitcoin miner continues to operate amid strained mining economics.
Cango said on Monday that EWCL agreed to subscribe to 7 million newly issued Class B ordinary shares for $10.5 million in cash, implying a per-share price of $1.50. The investment is governed by an agreement dated Dec. 29 and is expected to close in January, subject to customary conditions including approval from the New York Stock Exchange.
[article_ad_banner]The transaction would lift EWCL’s ownership of Cango’s outstanding shares from about 2.81% to 4.69%. But because Class B shares carry 20 votes each, EWCL’s voting power would increase from roughly 36.68% to 49.61%, bringing it close to outright control of shareholder votes.
EWCL is widely viewed as a vehicle tied to Bitmain and its financing arm Antalpha, following a series of transactions earlier this year that effectively repositioned Cango as a public-market shell for Bitmain’s proprietary mining assets. Cango, formerly a China-based automobile financing platform, has since exited that business and pivoted fully to bitcoin mining operations outside China.
The additional capital injection comes at a challenging moment for Cango’s mining economics. According to TheEnergyMag’s analysis of Cango’s third-quarter filings, the company’s fleet hashcost — excluding corporate and financing expenses — stood at about $39/PH/s. That level is already above the current network hashprice, indicating that Cango is likely mining at a gross loss before overhead costs are considered.
The company’s mining scale expanded rapidly this year after it agreed to acquire an additional 18 EH/s in an Antalpha-financed transaction, which boosted its total hashing capacity to 50 EH/s.
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