Cango raises capital as it faces NYSE delisting risk with shares below $1
The bitcoin miner issued a $10 million convertible note and closed a $65 million insider-led round while racing to regain compliance with exchange rules.
What to know:
- Cango warned it could be delisted from the NYSE if its share price doesn’t recover above $1 within six months.
- The company issued a $10 million convertible note to DL Holdings as part of a broader strategic partnership.
- It also closed a $65 million equity investment led by company insiders, paid in USDT.
Cango (CANG) is at risk of 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 the bitcoin miner a six-month window to recover, the company said in a press release Wednesday.
The New York Stock Exchange flagged the company on March 10, warning that failure to lift its 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 trading in the interim.
Against that backdrop, the company is shoring up its balance sheet with fresh capital.
In a separate announcement, Cango said it has entered into a $10 million convertible note agreement with Hong Kong-listed DL Holdings, alongside issuing warrants to purchase shares at $2.70 apiece. The financing is paired with a non-binding cooperation framework that could see the two firms pursue additional joint investments tied to crypto mining and AI 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.
