Cango (CANG) is susceptible to dropping its NYSE itemizing after its shares traded under $1 on common for 30 consecutive days, triggering a compliance discover from the alternate and giving the bitcoin miner a six-month window to get better, the corporate stated in a press launch Wednesday.
The New York Inventory Change flagged the corporate on March 10, warning that failure to elevate its share worth again above the $1 threshold by the tip of the treatment interval might result in suspension and delisting proceedings. Cango stated it plans to watch market circumstances and discover choices to regain compliance, whereas its shares proceed buying and selling within the interim.
In opposition to that backdrop, the corporate is shoring up its stability sheet with contemporary capital.
In a separate announcement, Cango stated it has entered right into a $10 million convertible observe settlement with Hong Kong-listed DL Holdings, alongside issuing warrants to buy shares at $2.70 apiece. The financing is paired with a non-binding cooperation framework that would see the 2 companies pursue further joint investments tied to crypto mining and AI infrastructure.
Proceeds from the observe are earmarked for upstream acquisitions and increasing Cango’s push into computing infrastructure, a part of a broader pivot past bitcoin mining.
Cango’s latest fundraising comes as the corporate pivots past its roots in bitcoin mining towards a broader technique centered on power and AI compute infrastructure. The agency has been positioning its world mining footprint as a basis for high-performance computing, aiming to repurpose or develop its energy capability to assist data-intensive AI workloads, a shift that mirrors a wider business pattern of miners searching for extra secure, higher-margin income streams.
The convertible issuance follows the closing of a $65 million strategic funding spherical led by entities managed by chairman Xin Jin and director Chang-Wei Chiu. The deal, settled in USDT and accomplished March 31, noticed the corporate problem greater than 49 million Class A shares.
Collectively, the transactions underscore administration’s effort to stabilize the corporate financially whereas betting on longer-term development in power and AI-linked compute, even because it faces near-term strain to maintain its NYSE itemizing intact.
Cango’s shares have slumped sharply this yr, highlighting the urgency behind its newest capital elevate. The inventory is down greater than 70% yr to this point, not too long ago buying and selling round $0.39 after beginning January above $1.40, with sustained promoting strain pushing it under the NYSE’s $1 minimal itemizing threshold.
Learn extra: Cango is promoting off its bitcoin stash to pay down debt and fund an AI makeover