Cango's Reverse Split Addresses Listing Rule, Not Underlying Losses

The NYSE-listed company, which pivoted from a Chinese auto-finance marketplace in November 2024 and then to AI at the end of 2025, converted every ten Class A and Class B shares into one. The move follows an April delisting notice issued after the stock traded below $1.00 for 30 consecutive days.

Cango shares closed 20 Jul at $0.18, down 88% year-to-date, and about 98% below the stock's all-time high of $9.80, reached in January 2021. Shareholders approved the consolidation at an extraordinary general meeting on 24 Jun, giving the board discretion to set the ratio and effective date within 15 days. Class A shares began trading on a post-consolidation basis on the New York Stock Exchange on 21 Jul, still under the ticker CANG.

Split resets price, not the balance sheet

A reverse split changes only the number of shares outstanding and the quoted price per share; it does not alter a company's underlying value or address why the stock fell in the first place. Cango's own numbers indicate that the decline has a real cause: a mining pivot found to be losing millions has continued to weigh on results. 

First-quarter 2026 revenue fell 43% quarter-on-quarter to $102mn, and the company reported a net loss of $261mn over the period, roughly three times its entire market capitalization at points earlier this year. The loss was driven mainly by non-cash impairment charges on mining machines and fair-value losses on Bitcoin held as collateral, both tied to Bitcoin's price decline during the quarter rather than by cash actually leaving the business. Cash and cash equivalents fell sharply over the same period to $7.2mn from $41mn, a genuine liquidity concern separate from the non-cash charges.

Sandmark has asked Cango to comment on the reverse split's relationship to the underlying business and its current liquidity position, but had yet to receive a response at the time of publication.

From car exports to Bitcoin mining

Cango still operates an online used-car export business through AutoCango.com, a legacy of its original service, but starting in 2024 labeled itself as a Bitcoin mining company building infrastructure across North America, the Middle East, South America and East Africa. As recently as mid-2025, Cango briefly ranked as the world's second-largest publicly listed Bitcoin miner by hashrate, behind only Marathon Digital, after reaching 50 EH/s. 

It has since deliberately scaled back mining capacity as part of its AI infrastructure pivot announced in late 2025 with the drop in the price of Bitcoin: even with the pivot, as of 20 Jul, industry tracker Ziven ranks Cango 8th among public miners by self-mining hashrate, at 23.32 EH/s – behind Marathon, Bitdeer, CleanSpark, Riot and IREN. That puts Cango's share at roughly 2.5% of the total Bitcoin network and just under 6% of the hashrate operated by all publicly listed miners combined. The company reported a mining output of 237.59 BTC in May, with a total operational hashrate, including leased capacity, of 31.67 EH/s. It also reported total Bitcoin holdings of 1,065 BTC.