Bitcoin mining hardware maker Canaan has expanded its mining interests by purchasing Cipher Mining’s 49% interest in three mining projects in Texas for approximately $39.75 million.
According to Monday’s announcement, the transaction involves Alborz LLC, Bear LLC and Chief Mountain LLC, a joint venture known collectively as the “ABC Project.” Following the transaction, Canaan will hold a 49% stake, with partner renewable energy infrastructure company WindHQ holding 51%.
“By increasing our exposure to high-quality, low-cost operating power assets in Texas, we are aligning our unique technology with critical infrastructure to drive long-term efficiency and scale,” said Nangen Zhang, Canaan’s chairman and chief executive officer.
The three facilities are already operational and have a combined power capacity of 120 megawatts and a hash rate of approximately 4.4 exahash per second (EH/s). Canaan also acquired 6,840 Avalon A15Pro mining rigs from Cipher. These machines were previously deployed at Cipher’s Black Pearl location, which has now been converted into an artificial intelligence and high-performance computing (AI-HPC) data center.
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Canaan Fund commits to $40 million stock issue
The purchase was financed through stock. Canaan issued 806,439,900 Class A shares representing 53,762,660 American Depositary Shares (ADS). The price is $0.7394 per ADS and is subject to a six-month lockup.
The Texas site benefits from power costs of less than $0.03 per kilowatt-hour and incorporates wind generation and grid demand response capabilities within the ERCOT power market, according to the announcement. “The ABC project features industry-leading power pricing, providing a strong foundation for growth,” Zhang added.
Canaan stock fell 5.7%. sauce: Google Finance
Canaan reported a strong fourth quarter of 2025, with revenue increasing 121.1% year over year to $196.3 million due to improved hardware shipments and mining production. Bitcoin ($BTC) Mining revenue increased by 98.5% to $30.4 million, and financial assets increased to $1,750. $BTC. The company shipped a record 14.6 EH/s of computing power and expanded its installed hashrate to 9.91 EH/s, backed by a large institutional order in the US.
Related: Bitcoin miners pursue 30GW of AI capacity to offset hash price pressure
Bitcoin miners turn to AI as margins tighten
Bitcoin mining companies are increasingly pushing into AI and cloud computing as profitability pressures increase. Last week, MARA Holdings acquired a 64% stake in French infrastructure company Exaion, giving the company a foothold in AI services.
The move comes amid industry-wide trends. Companies such as Hive, Hut 8, TeraWulf, and Iren are already fully transitioning, converting their mining facilities and power capacity to AI infrastructure.
Kannan also said the new acquisition is consistent with the company’s efforts to stabilize the power grid as demand for data centers increases.
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