Cango Inc. Completes US$65 Million Strategic Investment and Secures US$10 Million Convertible Note Financing to Strengthen Financial Position and Drive AI and Energy Expansion

Rhea-AI Summary

Cango (NYSE: CANG) closed a US$65.0 million strategic investment from two entities controlled by board members and completed a US$10.0 million convertible note financing with DL Holdings on April 1, 2026.

The company issued 49,242,424 Class A ordinary shares for US$65.0 million (settled in USDT) and sold a US$10 million note plus a warrant to DL Holdings to support upstream acquisitions and AI/compute expansion.

Key deal terms: note initial maturity April 1, 2028, initial conversion price US$1.62, warrant exercisable for 370,370 shares at US$2.70, and an MOU for potential further investments up to US$10 million (nonbinding except for customary provisions).

Positive

• US$65.0M leadership investment strengthens capital
• US$10.0M convertible note provides acquisition liquidity
• Warrant for 370,370 shares supplements funding optionality
• Proceeds designated to expand AI and computing infrastructure

Negative

• Potential shareholder dilution from conversion at US$1.62
• Warrant exercise and note conversion could increase share supply
• MOU investments up to US$10M are nonbinding and conditional

Key Figures

Strategic investment size: US$65.0 million Convertible note principal: US$10,000,000 Warrant shares: 370,370 shares +5 more

8 metrics

Strategic investment size US$65.0 million Insider-led Class A share investment closed March 31, 2026

Convertible note principal US$10,000,000 Note issued to DL Holdings under SPA

Warrant shares 370,370 shares Class A Ordinary Shares underlying DL Holdings warrant

Warrant exercise price US$2.70 Per Class A Ordinary Share, exercisable immediately until April 1, 2028

Note conversion price US$1.62 Initial conversion price per Class A Ordinary Share

Note maturity April 1, 2028 Initial maturity date, subject to optional extensions

Chiu ownership stake 11.99% Beneficial ownership of Cango Class A Ordinary Shares

Shelf registration capacity US$500,000,000 F-3 shelf for future securities offerings

Market Reality Check

Price: $0.4299 Vol: Volume 1,092,470 vs 20-da...

normal vol

$0.4299 Last Close

Volume Volume 1,092,470 vs 20-day average 1,262,025 (relative volume 0.87x) shows only moderate trading pickup despite the news. normal

Technical Shares at 0.411 trade well below the 200-day MA 2.97, sitting closer to the 52-week low 0.33 than the high 5.75.

Peers on Argus

Momentum scanner only captured CNCK up 4.05%, and broader peer moves in capital ...

1 Up

Momentum scanner only captured CNCK up 4.05%, and broader peer moves in capital markets/crypto-exposed names are mixed, indicating a stock-specific reaction to Cango’s financing news rather than a sector-wide shift.

Previous AI Reports

1 past event · Latest: Dec 24 (Positive)

Same Type Pattern 1 events

Date	Event	Sentiment	Move	Catalyst
Dec 24	Analyst rating	Positive	+2.2%	Buy initiation with US$4.00 target citing AI/HPC potential and assets.

Pattern Detected

AI-tagged coverage previously produced a modest positive move of 2.24%, suggesting limited but positive historical sensitivity to AI-focused narratives.

Recent Company History

Recent news shows Cango funding and repositioning its business toward AI and computing. A December 2025 AI-themed initiation highlighted asset-light mining and AI/HPC potential. February 2026 updates detailed Bitcoin production and an integrated energy + AI compute strategy. Insider-led equity financings in February 2026 were earmarked to strengthen the balance sheet and fund AI infrastructure. This new US$75M-plus capital package continues that balance sheet and AI expansion theme.

Historical Comparison

+2.2% avg move · Prior AI-tagged coverage saw a modest 2.24% move. Today’s AI-driven capital raise alongside a 20.67%...

AI

+2.2%

Average Historical Move AI

Prior AI-tagged coverage saw a modest 2.24% move. Today’s AI-driven capital raise alongside a 20.67% gain represents a much stronger market response to the theme.

AI-related news has progressed from a 2025 analyst initiation emphasizing Energy + HPC potential to 2026 insider and strategic financings explicitly funding AI and computing infrastructure expansion.

Regulatory & Risk Context

Active S-3 Shelf · US$500,000,000

Shelf Active

Active S-3 Shelf Registration 2025-12-17

US$500,000,000 registered capacity

An effective F-3 shelf filed on Dec 17, 2025 permits Cango to offer up to US$500,000,000 of Class A shares, debt, warrants, and units via future supplements, providing substantial pre-cleared capacity for additional capital raising if the company chooses to use it.

Market Pulse Summary

This announcement combined a US$65.0M insider-led equity investment with a US$10.0M convertible note...

Analysis

This announcement combined a US$65.0M insider-led equity investment with a US$10.0M convertible note and warrant from DL Holdings, all earmarked to strengthen Cango’s balance sheet and fund AI and computing infrastructure. It extends earlier financing steps and reinforces the pivot from pure Bitcoin mining toward an integrated energy and AI compute platform. Investors may watch how quickly proceeds translate into AI-related assets, and how future offerings under the US$500,000,000 shelf are used.

Key Terms

convertible note, warrant, memorandum of understanding, lock-up restrictions

4 terms

convertible note financial

"a convertible note in the principal amount of US$10,000,000 (the "Note")"

A convertible note is a type of loan that a company gets from investors, which can later be turned into company shares instead of being paid back in cash. It matters because it helps startups raise money quickly without setting a fixed value for the company right away, making it easier to grow and attract investors.

warrant financial

"and (ii) a warrant to purchase up to 370,370 Class A Ordinary Shares"

A warrant is a time-limited financial contract that gives its holder the right to buy a company's shares at a set price before a specified date, like a coupon that lets you purchase stock at a fixed discount for a limited time. It matters to investors because warrants offer leveraged exposure to a stock’s upside and can dilute existing shareholders if exercised, so they affect potential gains and the company’s outstanding share count.

memorandum of understanding regulatory

"entered into a memorandum of understanding ("MOU") establishing a forward-looking"

A memorandum of understanding (MOU) is a formal agreement between two or more parties that outlines their shared intentions and plans to work together. It acts like a handshake in writing, clarifying each side’s roles and expectations before any official contract is signed. For investors, an MOU signals that parties are serious about collaboration, which can influence future business opportunities and potential growth.

lock-up restrictions financial

"Class A Ordinary Shares issued upon conversion will be subject to customary lock-up"

A lock-up restriction is a temporary rule that prevents company insiders, early investors and employees from selling their shares for a set period after a public offering. It matters to investors because it limits how many shares can enter the market immediately—like a cooling-off period after a big sale—and when the restriction ends a large increase in available shares can put downward pressure on the stock price or reveal insiders’ confidence in the company.

AI-generated analysis. Not financial advice.

DALLAS, April 1, 2026 /PRNewswire/ -- Cango Inc. (NYSE: CANG) ("Cango" or the "Company"), a leading Bitcoin miner leveraging its global operations to develop an integrated energy and AI compute platform, today announced two significant capital transactions: the closing of a US$65.0 million strategic investment from members of Company leadership, and the execution of a US$10.0 million convertible note financing agreement with DL Holdings Group Limited (HKEX: 1709) ("DL Holdings"), a Hong Kong-listed financial services group. The Company and DL Holdings have also entered into a memorandum of understanding ("MOU") establishing a forward-looking strategic cooperation framework.

Closing of US$65.0 Million Strategic Investment

Pursuant to the definitive investment agreements previously announced on February 12, 2026, the Company issued and sold an aggregate of 49,242,424 Class A ordinary shares (the "Class A Ordinary Shares") to two entities, each wholly-owned by Mr. Xin Jin, Chairman of the Company's board of directors, and Mr. Chang-Wei Chiu, a director of the Company, respectively. The transaction closed on March 31, 2026, generating net proceeds equivalent to US$65.0 million, settled in USDT. This investment underscores the leadership team's confidence in Cango's strategic direction and long-term growth outlook while substantially reinforcing its capital structure.

US$10 Million Convertible Note Financing and Strategic Partnership with DL Holdings

Separately, the Company entered into a securities purchase agreement (the "SPA") with DL Holdings, a Hong Kong-listed financial services group, marking a significant milestone in establishing the foundation for sustained strategic collaboration between the two companies. Pursuant to the SPA, the Company issued and sold to DL Holdings (i) a convertible note in the principal amount of US$10,000,000 (the "Note") and (ii) a warrant to purchase up to 370,370 Class A Ordinary Shares at an exercise price of US$2.70 per Class A Ordinary Share, subject to adjustment as provided therein (the "Warrant").

The Company intends to use the proceeds from the Note issuance for its potential upstream acquisitions and to support its expansion into AI and computing infrastructure.

In addition, the Company entered into an MOU with DL Holdings, outlining a proposed strategic cooperation framework. Under the MOU, DL Holdings has expressed its intention to make one or more strategic investments along with the Company, with an aggregate potential value of up to US$10 million. The contemplated investments are aimed at supporting the Company's initiatives in cryptocurrency mining facilities and artificial intelligence. Any such investment would be subject to satisfactory due diligence and the execution of definitive binding agreements. Except for certain customary provisions, the MOU does not create legally binding obligations.

Mr. Chang-Wei Chiu, a director of the Company who beneficially owns approximately 11.99% of Class A Ordinary Shares through entities controlled by him, also holds approximately 3.12% of the issued shares of DL Holdings through a separate controlled entity.

Key Terms of the Convertible Note and Warrant

The initial maturity date of the Note is April 1, 2028, subject to certain optional extensions. The initial conversion price is US$1.62 per Class A Ordinary Share, subject to adjustment as provided therein. The Note does not accrue any interest, other than customary interests that become payable upon an event of default. The holder of the Note may, at its option, convert all or part of the Note into Class A Ordinary Shares at any time from April 1, 2027 until maturity. Class A Ordinary Shares issued upon conversion will be subject to customary lock-up restrictions. The Company has the right to redeem all or part of the outstanding principal of the Note for cash at the applicable redemption price, subject to certain conditions, including that the trading price of the Class A Ordinary Shares exceeds 130% of the conversion price for a specified period prior to redemption. The Warrant is exercisable immediately upon issuance, in whole or in part, and will expire on April 1, 2028.

These transactions are key steps in executing the Company's previously disclosed financial strategy entering 2026: to strengthen its balance sheet, reduce leverage, and secure liquidity for its pivot toward AI infrastructure.

About Cango Inc.

Cango Inc. (NYSE: CANG) is a Bitcoin mining company with a vision to establish an integrated, global infrastructure platform capable of powering the future digital economy. The Company's mining operations span over 40 sites across North America, the Middle East, South America, and East Africa.

Since entering the digital asset space in November 2024, Cango has activated pilot projects in both integrated energy solutions and distributed AI computing. In parallel, Cango continues to operate an online international used car export business through AutoCango.com.

For more information, please visit: www.cangoonline.com. 

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words or phrases such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Statements that are not historical facts, including statements about Cango's beliefs and expectations, are forward-looking statements. These statements are based on Cango's current expectations and assumptions and are not guarantees of future performance. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Cango's goal and strategies; Cango's expansion plans; Cango's future business development, financial condition and results of operations; Cango's expectations regarding demand for, and market acceptance of, its solutions and services; general economic and business conditions; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in Cango's filings with the SEC. All information provided in this press release is as of the date of this press release, and Cango does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

Investor Relations Contact

Juliet Ye, Head of Communications
Cango Inc.
Email: ir@cangoonline.com

Christensen Advisory
Tel: +852 2117 0861 
Email: cango@christensencomms.com 

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SOURCE Cango Inc.

FAQ

What did Cango (CANG) announce on April 1, 2026 about the US$65 million investment?

The company closed a US$65.0 million strategic purchase of 49,242,424 shares from leadership entities. According to the company, proceeds were settled in USDT and are intended to reinforce the balance sheet and support longer-term strategic plans.

What are the terms of the US$10 million convertible note Cango (CANG) issued to DL Holdings?

Cango issued a US$10.0 million convertible note with initial conversion price of US$1.62 and maturity April 1, 2028. According to the company, the note accrues no interest except on default and is convertible from April 1, 2027 until maturity.

How many shares can DL Holdings acquire via the warrant in the Cango (CANG) financing and at what price?

DL Holdings received a warrant to purchase up to 370,370 Class A shares at an exercise price of US$2.70 per share. According to the company, the warrant is exercisable immediately and expires April 1, 2028.

What is the purpose of the funds raised by Cango (CANG) from these April 1, 2026 transactions?

The company intends to use proceeds for potential upstream acquisitions and expansion into AI and computing infrastructure. According to the company, these steps support its strategy to strengthen the balance sheet and reduce leverage in 2026.

Does the memorandum of understanding with DL Holdings create binding obligations for Cango (CANG)?

No, the MOU is largely nonbinding except for certain customary provisions. According to the company, any strategic investments referenced are subject to due diligence and execution of definitive binding agreements.