Cango (CANG) is at risk of losing its listing on the New York Stock Exchange after its shares traded below $1 on average for 30 consecutive days, triggering a compliance notice from the exchange and giving bitcoin miner a six-month window to recover, the company said in a news release Wednesday.
The New York Stock Exchange alerted the company on March 10, warning that its failure to raise its share price above the $1 threshold by the end of the cure period could result in suspension and delisting proceedings. Cango said it plans to monitor market conditions and explore options to regain compliance, while its shares continue to trade in the meantime.
In this context, the company is strengthening its balance sheet with fresh capital.
In a separate announcement, Cango said it had entered into a convertible note deal worth $10 million with Hong Kong-listed DL Holdings, as well as issuing warrants to buy shares at $2.70 each. The financing is combined with a non-binding cooperation framework that could see the two companies make additional joint investments linked to crypto mining and artificial intelligence infrastructure.
Proceeds from the note are earmarked for upstream acquisitions and expanding Cango’s push into computing infrastructure, part of a broader pivot beyond bitcoin mining.
Cango’s recent fundraising comes as the company moves beyond its roots in bitcoin mining toward a broader strategy focused on energy and AI computing infrastructure. The company has been positioning its global mining footprint as a foundation for high-performance computing, aiming to repurpose or scale its power capacity to support data-intensive AI workloads, a shift that reflects a broader industry trend of miners seeking more stable, higher-margin revenue streams.
The convertible issuance follows the closing of a $65 million strategic investment round led by entities controlled by Chairman Xin Jin and Director Chang-Wei Chiu. The deal, closed in USDT and completed on March 31, allowed the company to issue more than 49 million Class A shares.
Taken together, the transactions underscore management’s effort to financially stabilize the company while betting on long-term growth in energy and AI-linked computing, even as it faces near-term pressure to keep its New York Stock Exchange listing intact.
Cango shares have plummeted sharply this year, underscoring the urgency behind its latest capital raise. The stock is down more than 70% so far this year, recently trading around $0.39 after starting January above $1.40, with sustained selling pressure pushing it below the NYSE’s $1 trading floor.
Read more: Cango is selling its bitcoin reserve to pay off debts and finance an AI revamp
