Cango Inc. (NYSE: CANG) has successfully completed the divestment of its entire business operations in the People's Republic of China (PRC), known as the "PRC Business." The sale to Ursalpha Digital Limited was finalized on May 27, 2025, for a cash consideration of approximately US$351.94 million. This strategic transaction marks a significant repositioning for Cango, enabling the company to fully concentrate its financial and operational resources on becoming a leader in the global Bitcoin mining industry.

Following this divestment, Cango is set to accelerate its expansion in Bitcoin mining across several key strategic regions. These include North America, the Middle East, South America, and East Africa, as the company aims to capitalize on emerging opportunities within the digital finance sector. This pivotal move transforms Cango from its previous focus, which included automotive services in China, into a specialized global Bitcoin mining entity. The company had initially entered the crypto asset space in November 2024, citing advancements in blockchain technology and the growing adoption of digital assets as key drivers.

The sale of the PRC Business provides Cango with a substantial capital injection, significantly bolstering its balance sheet and providing the necessary liquidity to fund its ambitious global Bitcoin mining expansion. This strategic shift also allows Cango to streamline its operations, improve capital allocation, and navigate away from the increasing regulatory uncertainties surrounding cryptocurrency activities in China. The company is now better capitalized to pursue its growth objectives and aims to enhance shareholder value through this focused strategy.

In conjunction with its strategic realignment, Cango has restructured its Board of Directors. Effective May 27, 2025, two new members have been appointed to the board. These individuals bring extensive expertise in crucial areas such as Fintech, Artificial Intelligence (AI), Web 3.0, and global capital markets. This strengthened board is expected to provide critical guidance for Cango's future endeavors in the Bitcoin sector, reinforcing the company's commitment to innovation and its aspiration for leadership in the dynamic digital finance landscape.

The timeline for this significant transaction began with the announcement of the initial agreements for the sale of the PRC Business on April 3, 2025. Shareholder approval for the divestment was subsequently obtained on May 16, 2025. A notable consequence of this sale is Cango's intention to apply to the China Securities Regulatory Commission (CSRC) for the termination of its "China Concept Stock" status, underscoring its complete departure from its previous operational and market identity tied to China.

Despite this strategic pivot to Bitcoin mining, Cango Inc. will continue to operate its online international used car export business through AutoCango.com. This platform facilitates access for global customers to high-quality vehicle inventory sourced from China, indicating a degree of diversification in its ongoing business activities alongside its primary focus on cryptocurrency mining.