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Tag: CANG Stock

  • Cango (CANG) Continues Rally After Unveiling Crypto Mining Plans

    Cango (CANG) Continues Rally After Unveiling Crypto Mining Plans

    Shares of Cango Inc. (NYSE: CANG) have experienced notable upward momentum, continuing their rally into the morning session. The stock rose 17.39% in pre-market trading to $3.47, building upon a 6.09% increase from the previous session, where it closed at $2.96. This surge follows the announcement of the company’s new crypto mining initiative.

    Strategic Crypto Mining Expansion

    Cango Inc. has entered into agreements to acquire a substantial number of on-rack crypto mining machines, with a combined hashrate of 50 Exahash per second (EH). The total value of this purchase is approximately $400 million. The primary vendor in this transaction is Bitmain Technologies Georgia Limited and Bitmain Development Limited, a prominent digital currency mining server manufacturer. CANG has agreed to purchase mining equipment from Bitmain for $256 million, representing a hashrate of 32EH.

    Additional Purchases and Share Issuance

    In addition to its deal with Bitmain, Cango has made arrangements to acquire further mining equipment from Golden TechGen Limited (GT) and other sellers, adding another 18EH of mining capacity. The total value of this portion of the purchase is $144 million, which CANG will pay through the issuance of approximately 145.7 million Class A ordinary shares. As a result of this transaction, GT is expected to hold up to 20% of its total outstanding shares, while the other sellers will collectively own 37.8%.

    Operational and Strategic Plans Moving Forward

    The newly acquired mining machines are currently operational in various data centers, primarily located in the United States, with some in other countries outside China. Cango plans to continue hosting these machines in existing facilities and to engage Bitmain’s affiliate for maintenance and operational services.

    Despite these new ventures, Cango will continue to invest in its core business operations, particularly in its used car platforms. If the crypto mining acquisition is completed, CANG expects crypto mining to generate a significant portion of its revenue, potentially overshadowing its existing business until it achieves substantial growth outside of China.

  • Congo Inc. (CANG) stock Rebounds After Hours While there is No News from the Company

    On April 22, the China-based holding company Congo Inc. (CANG)’s stock rebounded in the after hours. While there was no news from the company itself, many reports emerged claiming the U.S. and China audit issue is on the verge of resolution.

    Source: The Diplomat

    Thus, CANG stock entered the green in the after-hours to rally by over 19% while it traded in the red in the prior session. The stock reached a value of $2.81 in the after-hours following a decline of 2.07% in regular trading.

    What is Happening?

    On Friday, certain sources reported that the Chinese and U.S. audit issue is expected to reach a close very soon. Among the reports were those on Reuters and Asia Financial.

    According to Asia financial, the Vice Chairman of the China Securities Regulatory Commission (CSRC) commented on the issue during a panel discussion that they expect to reach an agreement in the near future. He further added that they are continuously in touch and in discussions with the U.S. regulatory authorities.

    Hence, a possible deal is an insight regarding the long-stretched dispute over the audit of Chinese securities listed in the U.S. This definitely calls for celebration among China-based companies and investors.

    Market Overview

    The audit dispute has been going on between China and the U.S. for over a decade now. While every country either complied with the PCAOB accounting rules or voluntarily delisted, China did neither. After long being at an impasse, the U.S. Congress passed an act in 2021 that requires the SEC to specifically delist any company that does not cooperate with the audit rules. Thus, the dispute now became a real problem as many Chinese companies were put on a delisting list for possible violation of the audit rules.

    This pushed China to finally start cooperating and revising its audit rules for complying with the U.S. audit authorities.

    CANG’s Analysis

    Initially focused on the auto finance business, CANG recently expanded its portfolio and entered car trading. Entering the car-trading services also opened the company to new headwinds like huge supply chain disruptions while it is still fighting renewed outbreaks of Covid in China. However, the company’s 2021 financials did fall in line or towards the higher end of its guidance with its new car business taking a larger portion of the total revenue. Its financial business shrank to just a quarter of the total revenue while car trading made up two-thirds of it.

    Conclusion

    While the company remains shy in its outlook for 2022 due to continued headwinds, its car business is definitely growing as it focuses on becoming a comprehensive automotive transaction service platform. Moreover, the company is also planning on investing in NEVs.

  • Cango Inc. (CANG) Stock Trending Lower Despite Promising Outlook of EV Sector as 5G Technology Gains Steam

    Despite endorsing the EV boom, Cango Inc. (CANG) stock prices were down 6.17% as of the market closing on July 23rd, 2021, bringing the price per share down to USD$4.41 at the end of the trading day. Subsequent premarket fluctuations saw the stock fall by another 0.45%, bringing it down to USD$4.39.

    History of Automotive Industry

    July 23rd, 2021 saw CANG stock issues its latest bi-monthly publishing about the automotive industry’s status quo, CANGO Auto View, which contained an article that divided the industry’s most recent 100-year history into four developmental stages. The first era resulted in luxury car brands that by now have developed an illustrious history; the second marked the industrialization of the assembly line and global proliferation of manufacturers, and the third era saw Toyota focus on the leanness from its predecessor era and address an energy crisis. The fourth and current era marks the rise of electric vehicles, focused on electrification, intelligence, connectivity, and shared mobility.

    CANG stock link with 5G Technology

    As 3G technology resulted in the rise of the PC Internet era, 4G resulted in the mobile Internet wave. The automotive industry will be at the forefront of the array of industries that 5G is set to revolutionize. 5G technology is under continuous development and is repeatedly hitting new milestones. The automotive industry is also motivated to push for the transition from traditional automotive to electric and non-fossil fuel vehicles.

    Scope of 5G Technology

    CANG stock expects the costs of single data unit transmission to be cut down substantially as a result of 5G technology powering a massively increased network capacity. Given how electric vehicles demonstrate a superiority over traditional models in terms of intelligence development, such as with short latency, the deployment of 5G technology is generating expectations of increased intelligence of new energy vehicles.

    EV Sector in China

    China is the largest market for the electrification of vehicles, with both government and consumer clients having a great need for environmental protection and air quality improvement. The country also owns the largest number of Internet of Vehicles companies, signaling their consumers’ high acceptance of the Internet. With the supply of related developers and engineers, the applicability of the Internet in the automotive industry is being explored.

    Future Outlook for CANG Stock

    Its most recent issue of CANGO Auto View does well to shed light on the promising scope of the effect of 5G technology on the automotive industry. The electric vehicle industry is set to explode following the proliferation of 5G as the new standard for connectivity. Investors are hopeful that management will continue to leverage the available resources to facilitate worthwhile increases in shareholder value.