Cango Inc. just secured $75.5 million in fresh equity, giving it the cash to transform its Bitcoin‑mining rigs into a cloud‑ready AI compute service. The raise follows a $305 million BTC sale that trimmed debt and left the company cash‑rich. Now, Cango is betting that you’ll turn to its low‑cost, power‑dense infrastructure for on‑demand AI workloads.
Equity Raise Breakdown
Class B Shares and Initial Investment
The round opened with a $10.5 million injection from Enduring Wealth Capital Limited. Seven million Class B shares were issued at $1.50 each, each carrying 20 votes. This gave Enduring Wealth a near‑controlling voting position—just under 50 %—while its economic stake stayed below 5 % of total equity.
Pending Class A Offering
A second tranche of roughly $65 million is slated to close soon. It will involve about 49 million Class A shares priced at $1.32, each with a single vote. The shares are being purchased by entities owned by Cango’s chairman, Xin Jin, and director Chang‑Wei Chiu, positioning them with modest equity and voting stakes that align their interests with the company’s new direction.
Strategic Rationale Behind the Pivot
After selling 4,451 BTC for roughly $305 million in USDT, Cango used the proceeds to repay a Bitcoin‑backed loan and cut its leverage. The company frames the move as a “broader shift toward AI and high‑performance computing.” In practice, the plan is to repurpose its global, grid‑connected mining infrastructure into a distributed compute platform that serves AI developers looking for affordable, on‑demand processing power.
AI Compute Architecture
Modular GPU Containers
Cango will deploy containerized GPU nodes across its existing sites. These modules are optimized for inference workloads, meaning they’ll crunch data for AI models rather than solving cryptographic hashes. The containers can be added or removed quickly, giving you flexibility to scale resources up or down as demand fluctuates.
Leveraging Existing Power Contracts
The company’s mining farms already enjoy cheap, reliable electricity and high‑capacity power contracts. By converting idle rigs into AI nodes, Cango avoids the massive capex of building new data centers. This approach also shortens time‑to‑market, letting customers tap into AI compute capacity within weeks instead of months.
Investor Outlook and Market Impact
The near‑50 % voting stake held by Enduring Wealth signals strong confidence in the AI transition. Insider participation from Jin and Chiu adds another layer of commitment. If Cango can successfully monetize its repurposed hardware, it could set a template for other miners facing margin pressure, while capturing a slice of the rapidly expanding AI‑compute market.
- Cash‑rich balance sheet after the BTC sale and equity raise.
- Low‑cost power from existing mining facilities.
- Scalable GPU containers ready for AI inference workloads.
- Aligned insider ownership that ties leadership to the new business model.
Ultimately, the success of Cango’s pivot will hinge on execution, market demand, and your willingness to adopt a compute platform that was built for mining but is now engineered for AI.
