Cango Inc. (NYSE: CANG) executed two large-scale Bitcoin sales in February and March 2026, liquidating a total of 6,451 BTC for approximately $442 million. All proceeds were used to repay Bitcoin-backed loans. Concurrently, the company raised $75 million through insider equity financing and a convertible note to fund its shift into artificial intelligence (AI) computing.
Two Rounds of Sales: Deleveraging and Reserve Reduction
In the first sale on February 7-8, Cango sold 4,451 BTC in the open market for net proceeds of about $305 million, settled in USDT. The implied average price was $68,524 per BTC. The cash was used to partially retire a Bitcoin-backed loan. After this sale, the company held 3,313.4 BTC in treasury and still mined 454.83 BTC during February.
In March, Cango sold another 2,000 BTC to clear the remaining balance of its crypto-secured debt. Market reports indicate an average price around $68,000–$69,000, yielding about $137 million. As of March 31, Cango's Bitcoin treasury stood at only 1,025.69 BTC, down sharply from over 7,500 BTC before the sales. Its outstanding crypto loan balance fell to $30.6 million. The company reported a total hashrate of 37.01 EH/s (27.98 EH/s self-mined, 9.02 EH/s from leasing), down from a peak of ~50 EH/s at end-2025, reflecting a deliberate downsizing strategy.
Cost Improvements and Strategic Focus
Cango's average cash cost per Bitcoin in March was $68,215.83, a 19.3% improvement from $84,552 in Q4 2025. The reduction came from retiring older machines, deploying more efficient Bitmain S21 and S21XP miners, moving capacity to low-cost power regions, and implementing revenue-sharing arrangements at high-cost sites. The company said it will prioritize cash margin per site over total hashrate.
$75M Funding to Power AI Transition
On March 31, Cango closed a $65 million equity raise from management and insiders (settled in USDT) and a $10 million convertible note from DL Holdings. This follows an earlier $10.5 million equity injection in February. The funds will support the buildout of GPU-based, modular containerized AI inference computing infrastructure aimed at small and medium enterprises.
Cango entered Bitcoin mining in November 2024, pivoting from its legacy auto finance and used-car export business. It built operations across more than 40 sites in North America, Middle East, South America, and East Africa. The current plan is to convert its grid-connected mining facilities into AI compute nodes. For fiscal 2025, Cango reported revenue of about $688 million and a net loss of $453 million, primarily due to mine build-out, price volatility, and transition costs.
Stock Price and Listing Risk
In early April 2026, the New York Stock Exchange (NYSE) informed Cango that its average closing price had fallen below $1.00 for 30 consecutive trading days, triggering a continued listing review. The company has six months to restore compliance. This adds pressure on its financing capability and market confidence as it executes its AI transformation.