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- Canaan secures 49% stake in major Texas mining projects
- $39.75M deal expands 120MW bitcoin power capacity footprint
- Equity issuance and rigs purchase reshape Cipher partnership
Canaan Inc. has acquired a 49 percent stake in three operational bitcoin mining projects in West Texas through a $39.75 million agreement with Cipher Mining. This move significantly increases its exposure to large-scale power infrastructure in the United States. The deal focuses on the ABC Projects comprising Alborz LLC, Bear LLC, and Chief Mountain LLC, and combined, the plants’ capacity is 120 megawatts of energized capacity with 4.4 exahashes per second of active hashrate. WindHQ will retain its 51 percent share in the joint venture, which will keep it in control even as it continues to partner with Canaan in the region.
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According to Nangeng Zhang, the chairman and chief executive officer of Canaan, the acquisition is a strategic expansion of the company in North America and a pairing of the company’s proprietary mining hardware with dependable, economical operational power assets in Texas. He underlined that enhanced integration of infrastructure and equipment assets is helpful for long-term efficiency and scalability, especially as competition intensifies among the key mining centers in the United States.
Equity Consideration and Transaction Structure
Under the deal, Canaan issued 806,439,900 Class A ordinary shares to Cipher, which are equivalent to 53,762,660 American Depository Shares for $0.7394/ADS, for a total transaction value of about $39.75 million. Such shares have a six-month lock-up provision to discourage immediate selling, which will provide some stability after issuance. Besides the equity element, Canaan bought 6,840 mining rigs from Cipher, which were initially sold to Cipher in July 2025 and installed at the Black Pearl facility in Texas before the location began transitioning to an AI and high-performance computing data center.
Texas Energy Strategy and Expansion Plans
The acquisition portrays Canaan’s shift from an opportunistic, asset-light power sourcing model to a more institutionalized upstream energy development model focused on direct United States power applications. As management mentioned, the company aims to combine bitcoin mining with AI and high-performance computing colocation opportunities, and to develop a large project pipeline by the end of 2026 that could grow to the level of gigawatts.
Recently, in January, Canaan disclosed fourth-quarter revenue of 196 million in 2007, a 121 percent improvement over the year before, and this is the highest sales it has made in its three years. In much of that recovery, the sale of mining machines was a factor; yet, with the better financial performance, the Nasdaq-traded shares of Canaan fell 5.71 per cent on Monday and have dropped 41 per cent in the last month as the stock market became more volatile.
Acquiring a 49 per cent interest in these bitcoin mining projects in Texas makes Canaan stronger in its control of the power infrastructure and further strengthens its strategic relationship with Cipher as its partner and shareholder.
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