FX.co ★ Cango To Acquire Crypto Mining Assets For $400 Mln; Stock Down

Cango Inc. (CANG) has announced a significant acquisition on Wednesday involving the purchase of advanced crypto mining machines with a cumulative hashrate of 50 Exahash per second. This acquisition, valued at $400 million, will be sourced from a consortium that includes Bitmain Technologies Georgia Ltd. and Bitmain Development Ltd.

The transaction details reveal that Cango will acquire mining equipment with a total hashrate of 32 Exahash from Bitmain for $256 million, payable in cash. Additionally, Cango will engage in a share-based transaction amounting to $144 million with Golden TechGen Ltd. and other participants.

Consequent to the completion of these share-based transactions, the sellers will collectively own approximately 37.8% of Cango's total outstanding shares. The transaction is projected to be finalized by March 31, 2025.

Currently, shares of Cango are experiencing a decline, trading down by 4.58%, at $2.70 on the New York Stock Exchange.