Crypto: Cango Raises $75.5m As Bitcoin Miner Makes AI Infrastructure Pivot
The funding follows a $305 million Bitcoin sale and increases a key investor’s voting power to nearly 50%, as the company restructures its balance sheet amid sector volatility.
Bitcoin miner Cango said it closed a previously announced $10.5 million equity investment from Enduring Wealth Capital Limited and entered into agreements for an additional $65 million in equity financing from entities owned by Cango chairman Xin Jin and Chang-Wei Chiu, a director of the company.
According to Thursday’s announcement, the $10.5 million investment was completed through the issuance of seven million Class B shares priced at $1.50 each. The shares carry 20 votes per share, increasing Enduring Wealth Capital’s voting power to 49.7% from 36.7%, while its economic ownership remains below 5% of outstanding shares.
The additional $65 million would be raised through the issuance of about 49 million Class A shares, which carry one vote per share, at $1.32 each. The investments are being made through entities wholly owned by Jin and Chiu and remain subject to customary closing conditions, including approval from the New York Stock Exchange. The company said it expects the transactions to close this month.
If completed, Chiu would hold about 12% of total outstanding shares and about 6.7% of voting power, while Jin would hold about 4.7% of shares and 2.6% of voting power.
The financing follows Cango’s Feb. 9 sale of 4,451 Bitcoin (BTC) for about $305 million, proceeds of which were used to partially repay a Bitcoin-backed loan and reduce leverage.
The company said the divestment is part of a broader shift toward AI and high-performance computing, with plans to repurpose its global, grid-connected mining infrastructure to provide distributed compute capacity for the AI industry.
Cango’s stock price was down about 7.7% at time of writing, according to data from Yahoo Finance. Sector-tracker CoinShares Bitcoin Mining ETF was down 3.8%.
Related: The real ‘supercycle’ isn’t crypto, it’s AI infrastructure: Analyst
Cango’s capital raise follows sharp declines in publicly traded Bitcoin miners last week. CleanSpark fell about 19% during regular trading on Feb. 5 and dropped another 8.6% after hours after missing quarterly estimates, while IREN slid about 11.5% and another 18.5% after hours after reporting revenue below expectations and a quarterly net loss.
Source: CoinTelegraph
