Cango convertible note financing: $65M equity buy-in and $10M DL Holdings deal

Cango Inc. (NYSE: CANG) says it has completed two funding steps tied to its AI compute platform and cryptocurrency mining push. The moves include Cango convertible note financing from DL Holdings Group Limited (HKEX: 1709) and a leadership equity buy-in. 1) $65.0M equity placement. Cango sold 49,242,424 Class A ordinary shares to entities wholly owned by Chairman Xin Jin and director Chang-Wei Chiu. Proceeds were settled in USDT and used to strengthen capital structure and liquidity, matching previously announced Feb. 12, 2026 terms. 2) $10.0M convertible note financing. Under the securities purchase agreement, Cango issued a US$10,000,000 convertible note plus a warrant for up to 370,370 Class A shares. Key terms: no interest under normal conditions; maturity April 1, 2028; conversion at US$1.62 per share starting April 1, 2027. The warrant is exercisable immediately and expires April 1, 2028. Cango also signed an MOU with DL Holdings for potential additional strategic investments up to US$10M. The company frames the Cango convertible note financing as part of its 2026 plan to reduce leverage and fund AI infrastructure via its Ecohash subsidiary, including integrated energy and distributed AI inference pilots. Traders should note Cango’s recent history of mining-era losses and post-halving pressure, while the market has shown skepticism—CANG shares reportedly fell to around $0.40 by April 1—suggesting investors want execution proof on Ecohash and the energy-to-AI strategy. For crypto traders, this is primarily balance-sheet and capacity-funding news for a BTC miner rather than a direct BTC policy/flow catalyst.