The mining hardware manufacturer takes over 49% of three operational joint ventures in Texas, paying in company shares.
Canaan Inc. has acquired Cipher Mining‘s 49% stake in three operational Bitcoin mining projects in West Texas, in a deal valued at approximately $39.75 million. The acquisition covers the ABC Projects, a group of three joint ventures named Alborz LLC, Bear LLC, and Chief Mountain LLC. The remaining 51% of the stakes stays in the hands of WindHQ, Canaan’s partner in the operation.
The sites in question have a total energy capacity of 120 MW and support approximately 4.4 EH/s of combined operational hashrate. As consideration for the acquisition, Canaan issued 806,439,900 Class A ordinary shares to Cipher, equivalent to 53,762,660 American Depositary Shares (ADS) at a unit price of $0.7394 per ADS, for a total consideration of approximately $39.75 million. The shares are subject to a six-month lock-up period, effectively making Cipher a shareholder of Canaan.
As part of the same transaction, Canaan also purchased 6,840 additional miners from Cipher – equipment originally manufactured by Canaan in July 2025 and installed at Cipher’s Black Pearl site. The latter facility is currently being converted into a data center for AI and HPC (High Performance Computing) workloads.
Nangeng Zhang, Chairman and Chief Executive Officer of Canaan, commented:
“This acquisition represents a disciplined expansion of our presence in the digital asset sector in North America and a decisive step in executing Canaan’s broader energy strategy. By increasing our exposure to high-quality, low-cost operational energy assets in Texas, we are aligning our proprietary technology with critical infrastructure to drive efficiency and scale over the long term.”
The deal is part of a declared strategic shift by Canaan: a move away from an opportunistic, asset-light approach toward a structured upstream energy development model, with a focus on direct U.S. applications and the integration of Bitcoin mining with AI-HPC colocation. The company stated its aim to build a project pipeline for substantial workloads by the end of 2026, potentially at gigawatt scale.
On the financial front, Canaan had reported a strong rebound in fourth-quarter results at the beginning of February 2026, with revenues of $196 million, up 121% year-over-year and the best quarterly result in three years, driven primarily by mining machine sales.
