11:44 AM EST, 11/06/2024 (MT Newswires) -- Cango ( CANG ) said Wednesday it has entered into agreements to purchase on-rack crypto mining machines with a combined hashrate of 50 exahash per second for $400 million.

The deal consists of a $256 million cash transaction with Bitmain Technologies Georgia and Bitmain Development for 32EH of mining capacity, along with share-based transactions totaling $144 million for 18EH with Golden TechGen and other sellers, the company said.

After the share-settled transactions, Golden TechGen will own up to 20% of the company, while all sellers will hold about 37.8% of the total outstanding shares.

The company expects to close the proposed transactions by March 31, 2025, but there is no guarantee that the closing conditions will be met or that the transactions will be completed on time or at all, Cango ( CANG ) said.

Shares of Cango ( CANG ) were down 1.4% in recent Wednesday trading.

Price: 2.79, Change: -0.04, Percent Change: -1.41