Cango’s Crypto Makeover Gains Momentum With China Exit
The move could pave the way for the former car trader to relocate its headquarters outside the Chinese Mainland, with Singapore, Hong Kong and the U.S. as possible destinations
Key Takeaways:
- Cango announced it completed the sale of its China business, including its car-trading and financing services in a deal valued at $352 million
- The company also announced a major overhaul of its board, bringing in new members with financial expertise, reflecting its new focus on bitcoin mining
Where is recently minted bitcoin miner Cango Inc. (CANG.US) headed next?
That question loomed large this week, as the company announced on Tuesday that it had taken a major step in shedding its roots in Mainland China, where cryptocurrency is illegal. Cango’s original roots are in China, though all of its bitcoin mining operations are outside the country. But it announced it has completed the sale of its China-based business, including its core car-trading and financing services, in a deal first announced in April and approved by Cango shareholders on May 16.
That could pave the way for Cango to officially move its headquarters outside of Mainland China, as it implied it might do soon with a statement about the disposal of its China business. One strong candidate for such a relocation could be Hong Kong, which is part of China but is highly autonomous and allows cryptocurrency trading. Another is Singapore, which is also emerging as a regional cryptocurrency hub and where Cango also has some ties. And a third option is the U.S.
“As the company no longer has any business in the People’s Republic of China, the company will submit a filing with the China Securities Regulatory Commission for the termination of the company’s status as a ‘China Concept Stock’ subject to CSRC’s jurisdiction,” Cango said in its statement, referring to China by its formal name.
The company also announced a major overhaul …
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