Cango Inc. (NYSE: CANG) (“Cango” or the “Company”), a leading automotive transaction service platform in China, today announced that it has completed the previously announced acquisition of on-rack crypto mining machines with an aggregate hashrate of 32 Exahash per second (“EH”) for a total purchase price of US$256 million in cash (the “Cash-Settled Transaction”) from Bitmain Technologies Georgia Limited and Bitmain Development Limited (together, “Bitmain”), a leading manufacturer of digital currency mining servers. The Company announced the Cash-Settled Transaction on November 6, 2024, together with its proposed acquisition of on-rack crypto mining machines with an aggregate hashrate of 18 EH from Golden TechGen Limited and certain other sellers for a total purchase price of approximately US$144 million, which will be paid through issuance of shares to the sellers by the Company (the “Share-Settled Transactions” and together with the Cash-Settled Transaction, the “Proposed Transactions”).
The Cash-Settled Transaction was consummated after the relevant closing conditions are satisfied. Based on further due diligence with the sellers, the Company and the sellers have concluded that no related sellers will sell U.S. assets with an aggregate value of US$119.5 million or more to the Company in the Proposed Transactions, and therefore the anti-trust filing and clearance in the U.S. is not required for the Proposed Transactions and the relevant closing condition is deemed to have been satisfied. As such, the Company and Bitmain closed the Cash-Settled Transaction through assignment to the Company of all hash computing power of the mining machines to be delivered in the Cash-Settled Transaction, and transfer of these machines’ ownership to the Company is expected to occur at a later stage as agreed by the parties.
The closing of the Share-Settled Transactions is subject to certain closing conditions that are yet to be satisfied or waived and the Company is working with the relevant parties towards the closing of the Share-Settled Transactions.
