Cango (CANG) is at risk of losing its NYSE listing after its shares traded at a 30-day average price below $1, triggering a compliance notice from the exchange and giving Bitcoin The miner has a six-month recovery period, the company said in a press release on Wednesday.
The New York Stock Exchange issued a warning to the company on March 10, warning that failure to lift its share price above the $1 threshold before the end of the recovery period could result in a trading suspension and delisting proceedings. Cango said it plans to monitor market conditions and explore options for returning to compliance while its shares continue to trade during this period.
Against this backdrop, the company is shoring up its balance sheet with new capital.
Cango said in a separate announcement that it had signed a convertible note agreement worth US$10 million with Hong Kong-listed DL Holdings and issued warrants to purchase shares at US$2.70 per share. The financing comes in conjunction with a non-binding cooperation framework in which the two companies may seek additional joint investments related to cryptocurrency mining and artificial intelligence infrastructure.
Proceeds from the note are earmarked for upstream acquisitions and expanding Cango’s push into computing infrastructure as part of a broader business beyond Bitcoin mining.
Cango’s latest funding comes as the company pivots away from its bitcoin mining business and toward a broader strategy centered on energy and artificial intelligence computing infrastructure. The company has been positioning its global mining footprint as a foundation for high-performance computing, aiming to repurpose or expand its power capacity to support data-intensive artificial intelligence workloads, a shift that reflects a broader industry trend of miners seeking more stable, more profitable revenue streams.
The convertible bond 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 transaction was settled in USDT and completed on March 31, with the company issuing more than 49 million Class A shares.
Taken together, the deals underscore management’s efforts to stabilize the company’s finances while betting on long-term growth in energy and artificial intelligence-related computing, even as the company faces near-term pressure to keep its New York Stock Exchange listing intact.
Cango’s shares have fallen sharply this year, underscoring the urgency behind its latest funding round. The stock has fallen more than 70% year to date and has recently been trading around $0.39 after starting above $1.40 in January, with continued selling pressure pushing it below the New York Stock Exchange’s $1 minimum listing threshold.
Read more: Cango is selling its Bitcoin reserves to pay down debt and fund an AI revamp
