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Cango Inc. (CANG) closed a $65 million strategic investment from company leadership and secured $10 million in convertible note financing from DL Holdings Group Limited (1709), according to a company statement.
The $65 million investment involved the issuance of 49.2 million Class A ordinary shares to entities owned by Chairman Xin Jin and Director Chang-Wei Chiu. The transaction closed March 31, 2026, with proceeds settled in USDT.
Separately, Cango entered a securities purchase agreement with Hong Kong-listed DL Holdings for a $10 million convertible note and warrant package. The convertible note has an initial maturity date of April 1, 2028, with a conversion price of $1.62 per Class A ordinary share. The note carries no interest except in default situations. Conversion is available starting April 1, 2027.
The warrant allows DL Holdings to purchase up to 370,370 Class A ordinary shares at $2.70 per share and expires April 1, 2028. Cango can redeem the note under certain conditions, including when share prices exceed 130% of the conversion price for a specified period.
The companies signed a memorandum of understanding for potential future strategic cooperation. DL Holdings expressed interest in making additional strategic investments with Cango worth up to $10 million, subject to due diligence and definitive agreements.
Cango stated it plans to use the convertible note proceeds for potential upstream acquisitions and AI computing infrastructure expansion. The Bitcoin mining company operates across more than 40 sites in North America, the Middle East, South America, and East Africa.
Director Chang-Wei Chiu owns approximately 11.99% of Cango’s Class A ordinary shares and holds about 3.12% of DL Holdings shares through separate controlled entities.