Cango Inc. (NYSE: CANG) has received a preliminary, non-binding letter of intent from Enduring Wealth Capital Limited (EWCL) to take control of the company, according to public company filings reviewed by Blockspace.
The proposal includes acquiring 10 million Class B shares from Cango’s co-founders, converting remaining Class B shares into Class A shares, restructuring the board and management, and selling the company’s existing business in China to focus on Bitcoin mining. EWCL also suggests deregistering Cango as a “China Concept Stock” with the CSRC.
“EWCL also proposed that the Company should dispose of its existing business in the PRC, and EWCL would be happy to introduce a potential buyer, to facilitate the growth of the Company’s business outside China, in particular, the Company’s new crypto mining business,” the filing states.
To evaluate the proposal, Cango’s board has formed a special committee of three independent directors, who will assess the transaction and may hire legal and financial advisors. The board warns shareholders that no decisions have been made, and there is no assurance that any deal will be finalized.
Read more: Chinese car company Cango emerges as third largest public miner
Incorporated in the British Virgin Islands, Enduring Wealth counts Andrea Dal Mas as a director, also a managing partner and Chief Information Officer at Antalpha Ventures.
Cango first began mining Bitcoin in November 2024. U.S. market did not become aware of the firm until the following month, following industry reporting.
The stock is down 24% year to date as of reporting.
