Cango secures $10.5M, lines up $65M for AI infrastructure
News
Bitcoin miner Cango announced it has finalized a previously disclosed $10.5 million equity investment from Enduring Wealth Capital Limited and signed agreements for an additional $65 million in equity funding from entities controlled by chairman Xin Jin and director Chang-Wei Chiu.
In a Thursday announcement, the company said the $10.5 million tranche was completed through the issuance of seven million Class B shares at $1.50 per share. Each Class B share carries 20 votes, lifting Enduring Wealth Capital’s voting power to 49.7% from 36.7%, while its economic stake remains under 5% of outstanding shares.
The additional $65 million is expected to be raised via approximately 49 million Class A shares, which grant one vote per share, priced at $1.32 each. These investments, made through entities wholly owned by Jin and Chiu, are subject to customary closing conditions, including approval from the New York Stock Exchange. Cango said it anticipates closing the transactions this month.
Upon completion, Chiu would hold about 12% of total outstanding shares and approximately 6.7% of voting power. Jin would own around 4.7% of shares and about 2.6% of voting power.
The capital raise follows Cango’s Feb. 9 sale of 4,451 Bitcoin (BTC) for roughly $305 million, with proceeds used to partially repay a Bitcoin-backed loan and lower leverage.
The company said the divestiture aligns with a broader pivot to artificial intelligence and high-performance computing. Cango plans to convert its global, grid-connected mining footprint to supply distributed compute capacity for the AI sector.
Cango’s shares were down about 7.7% at the time of writing, while the CoinShares Bitcoin Mining ETF fell 3.8%.
Source: Yahoo Finance
Earnings misses and BTC volatility pressure mining sector
The company’s fundraising comes after steep declines in publicly listed Bitcoin miners last week. CleanSpark dropped about 19% during regular trading on Feb. 5 and declined another 8.6% after hours following an earnings miss. IREN slid roughly 11.5% and a further 18.5% after hours after reporting revenue below expectations and a quarterly net loss. RIOT Platforms and MARA Holdings also fell about 15% and 19%, respectively.
The sell-off coincided with a sharp pullback in Bitcoin, which fell about 12% the same day, moving from approximately $71,426 to $62,822, according to CoinGecko.
Bitcoin price over the past month. Source: CoinGecko
Large miner-related transfers were also observed. On Feb. 5, wallets linked to miners moved 28,605 BTC worth about $1.8 billion—one of the biggest single-day outflows since November 2024—according to CryptoQuant. Another 20,169 BTC moved the following day.
Despite recent declines, many mining stocks remain positive year-to-date. IREN, the largest Bitcoin miner by market capitalization, is up about 10% year-to-date. Applied Digital and TeraWulf have each gained roughly 45%, Core Scientific is up about 25%, Riot Platforms has advanced approximately 17%, and Hut 8 is up nearly 15% over the same period.
Among the top 10 Bitcoin mining stocks by market cap, MARA Holdings and CleanSpark are the only names trading lower year-to-date. MARA is down about 17%, while CleanSpark has declined approximately 6.5%, according to BitcoinMiningStock.io.
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