Cango ( CANG ) risks losing its NYSE listing 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 press release on Wednesday.
The New York Stock Exchange flagged the company on March 10, warning that failure to raise the share price back above the $1 threshold by the end of the cure period could lead to 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.
Against this background, the company is strengthening its balance sheet with fresh capital.
In a separate announcement, Cango said it has entered into a $10 million convertible agreement with Hong Kong-listed DL Holdings, alongside the issuance of warrants to buy shares at $2.70 apiece. The funding is paired with a non-binding collaboration framework that could see the two firms pursue further joint investments linked to cryptomining and AI infrastructure.
Proceeds from the note are earmarked for acquisitions and expansion of Cango’s efforts in computing infrastructure, part of a broader pivot beyond bitcoin mining.
Cango’s latest fundraising comes as the company moves beyond its roots in bitcoin mining toward a broader strategy centered on energy and AI computing infrastructure. The firm has positioned its global mining footprint as a foundation for high-performance computing, aiming to repurpose or expand 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 completion of a $65 million strategic investment round led by entities controlled by Chairman Xin Jin and Director Chang-Wei Chiu. The deal, which settled in USDT and closed on March 31, saw the company issue more than 49 million Class A shares.
Together, the transactions underscore management’s efforts to stabilize the company financially as it bets on long-term growth in energy and AI-linked compute, even as it faces near-term pressure to keep its NYSE listing intact.
Cango’s shares have fallen sharply this year, underscoring the urgency of the latest capital raising. The stock is down more than 70% year-to-date, recently trading around $0.39 after starting January above $1.40, with continued selling pressure pushing it below the NYSE’s minimum listing threshold of $1.
Read more: Cango is selling its bitcoin stock to pay down debt and fund an AI makeover
