Cango (CANG) is at risk of losing its NYSE listing after its stock traded below an average of $1 for 30 consecutive days, triggering a compliance notice from the exchange and giving Bitcoin miners six months to recover, the company said in a press release on Wednesday.
On March 10, the New York Stock Exchange issued a warning to the company, warning that if the stock price does not return to the benchmark of $1 or more by the end of the bailout period, it could be subject to trading suspension or delisting procedures. Kango said it plans to continue trading its shares in the interim while it monitors market conditions and explores options to restore compliance.
Against this backdrop, the company is strengthening its balance sheet with new capital.
In a separate announcement, Kango said it had entered into a $10 million convertible note agreement with Hong Kong-listed DL Holdings, along with issuing warrants to purchase shares at $2.70 per share. This funding is combined with a non-binding cooperation framework, with the companies potentially pursuing additional joint investments related to crypto mining and AI infrastructure.
Proceeds from the memo will go toward upstream acquisitions and expanding Cango’s efforts in computing infrastructure, part of a broader pivot beyond Bitcoin mining.
Cango’s recent funding comes as the company pivots beyond its Bitcoin mining roots to a broader strategy centered around energy and AI computing infrastructure. The company positions its mining sites around the world as the foundation for high-performance computing, and aims to reuse or expand their power capacity to support >Cango is selling hidden Bitcoin assets to pay off debt and fund AI upgrades
