- Cango closed $65 million in funding from board-led equity to go with $10 million via a convertible note from DL Holdings Group.
- The convertible note includes share conversion, warrants, and potential redemption terms.
- Funding follows a $305M BTC sale to cut debt and shift toward AI compute.
Bitcoin miner Cango has closed the financing round it initially announced in February; it has raised over $75 million to boost its AI infrastructure business, with $65 million of the capital coming from an equity investment led by members of its own board.
The remaining $10 million comes from a convertible note agreement that it entered with a Hong Kong-listed DL Holdings Group.
Cango, which is NYSE-listed, also entered a memorandum of understanding (MOU) with DL Holdings, and this opens the door to more investments in the future.
Cango’s CANG stock is up more than 11.5% over the last five days per Google Finance data, trading at $0.41 as of writing time.
Cango’s leadership commits $65M to its company
Cango announced that it finally closed the $65 million equity raise first reported in February on March 31, 2026.
Xin Jin, chairman of the company’s board of directors, and Chang-Wei Chiu, a company director, are the two board members behind the equity investment.
Under the terms of the transaction, Cango has issued an aggregate of 49,242,424 Class A ordinary shares to two entities linked to the chairman and director, respectively. The proceeds of the $65 million were settled in USDT.
The closing follows a recapitalization effort that Cango outlined earlier this year, which included a $305 million sale of Bitcoin holdings to retire debt obligations.
Cango’s CEO, Paul Yu, has stated that the capital strategy is one designed to eliminate financial leverage and redirect capacity toward the company’s AI compute ambitions, which the company frames as addressing the “Power Gap,” which is the current mismatch imbalance between the rise in AI compute demand and power supply.
What are the terms of the DL Holdings financing?
Alongside the equity close, Cango entered into a securities purchase agreement with DL Holdings, issuing a zero-interest $10 million convertible note maturing on 1 April 2028, and it comes with an option for certain extensions.
The note carries an initial conversion price of $1.62 per Class A ordinary share. According to Cango, it will become convertible “at any time from April 1, 2027 until maturity.” Shares issued upon conversion will be subject to customary lock-up restrictions.
Cango also issued DL Holdings a warrant to purchase up to 370,370 Class A ordinary shares at an exercise price of $2.70 per share, and this will be exercisable immediately, and it expires on 1 April 2028. However, this price is subject to adjustments based on the provisions provided in the warrant.
Cango has the right to redeem all or part of the note for cash, provided its share price exceeds 130% of the conversion price for a specified preceding period.
The company intends to use proceeds from the convertible note to fund potential upstream acquisitions and to support its expansion into AI and computing infrastructure.
One noteworthy disclosure is that Chang-Wei Chiu, who participated in the $65 million equity investment and sits on Cango’s board, also holds approximately 3.12% of DL Holdings’ issued shares via a separate controlled entity.
In the MOU between Cango and DL Holdings, the latter reportedly expressed an intention to make one or more strategic investments alongside Cango, with an aggregate potential value of up to $10 million.
The potential investments will be targeting cryptocurrency mining facilities and artificial intelligence initiatives. The MOU is non-binding except for some provisions, and any investment that will come as a result remains subject to due diligence and what Cango terms “the execution of definitive agreements.”
