Cango (CANG) faces losing its NYSE listing after its shares traded below $1 on average for 30 consecutive days, triggering a notice of compliance from the exchange and giving bitcoin The miner has a six-month window to recover, the company said in a press release on Wednesday.
The New York Stock Exchange reported the company on March 10, warning that failure to bring its stock price above the $1 threshold before the end of the healing period could result in suspension and delisting proceedings. Cango said it plans to monitor market conditions and explore options to restore compliance, while its shares continue trading in the meantime.
In this context, the company is strengthening its balance sheet with new capital.
In a separate announcement, Cango said it had entered into a $10 million convertible note deal with Hong Kong-listed DL Holdings, as well as issuing warrants to buy shares at $2.70 each. The funding is coupled with a non-binding cooperation framework that could allow both companies to pursue additional joint investments related to cryptocurrency mining and AI infrastructure.
Proceeds from the note are intended for Cango’s upstream acquisitions and expansion into IT infrastructure, as part of a broader pivot beyond Bitcoin mining.
Cango’s recent fundraising comes as the company moves beyond its roots in Bitcoin mining to a broader strategy focused on energy and AI computing infrastructure. The company has positioned its global mining footprint as a foundation for high-performance computing, with the aim of reusing or expanding 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, settled in USDT and finalized on March 31, saw the company issue more than 49 million Class A shares.
Together, the transactions underscore management’s efforts to financially stabilize the company while betting on long-term growth in energy and AI-related computing, even as it faces near-term pressure to keep its NYSE listing intact.
Cango shares have fallen sharply this year, underscoring the urgency of its latest capital raise. The stock is down more than 70% year-to-date, recently trading around $0.39 after starting January above $1.40, with sustained selling pressure pushing it below the NYSE’s $1 minimum trading threshold.
Learn more: Cango sells its bitcoin stash to pay off debt and fund an AI overhaul
