Cango To Acquire Crypto Mining Assets For $400 Mln; Stock Down

(RTTNews) - Cango Inc., (CANG), Wednesday announced that the company has agreed to buy on-rack crypto mining machines with an aggregate hashrate of 50 Exahash per second for $400 million from a group of sellers including Bitmain Technologies Georgia Ltd. and Bitmain Development Ltd.

The deal includes the purchase of on-rack crypto mining machines with an aggregate hashrate of 32EH from Bitmain $256 million in cash, and a share-based transaction of $144 million with Golden TechGen Ltd. and other sellers.

Upon closing of the share-settled transactions, all sellers will own about 37.8 percent of the company's total outstanding shares.

The deal is expected to close on or before March 31, 2025.

Currently, Cango's stock is moving down 4.58 percent, to $2.7 on the New York Stock Exchange.