Cango has secured $75.5 million in new funding as it prepares to shift its operations toward artificial intelligence (AI) and high-performance computing.
The company plans to use its existing global Bitcoin
mining sites to support distributed computing for AI workloads.
The funding comes in two parts. The first portion, worth $10.5 million, has already been completed. Enduring Wealth Capital Limited received seven million Class B shares at $1.50 each. These shares carry 20 votes per share.
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This increased Enduring Wealth Capital’s voting control to 49.7%, up from 36.7%, while its economic ownership stays below 5%.
The second portion totals $65 million. It involves about 49 million Class A shares, priced at $1.32 per share, with one vote per share. These shares will be purchased through entities owned by Cango chairman Xin Jin and board member Chang-Wei Chiu.
The agreements still require standard approvals, including clearance from the New York Stock Exchange. Cango expects the closing to take place within the month.
If the transactions close as planned, Chiu would own around 12% of all outstanding shares and hold about 6.7% of voting power. Jin would own roughly 4.7% of shares and about 2.6% of voting power.
The new financing follows Cango’s sale of 4,451 Bitcoin on February 9 for approximately $305 million. The company used part of the proceeds to pay down a loan backed by Bitcoin and to reduce overall debt.
On February 9, Ripple added new features to its institutional custody platform by connecting it to Securosys and Figment. How do they work? Read the full story.
