- Canaan secures 49% stake in major Texas mining sites
- $39.75M share deal boosts power capacity to 120MW
- AI pivot reshapes Cipher ties as mining strategy expands
Canaan has expanded its United States footprint after finalizing a $39.75 million transaction tied to operational bitcoin mining assets in Texas, strengthening its exposure to large scale energy infrastructure in a key mining region. The company acquired Cipher Mining’s 49% interest in a joint venture overseeing three active sites in West Texas, increasing its direct participation in projects already contributing measurable hashrate. As a result, Canaan now holds a 49% stake in the ABC Projects, which include Alborz LLC, Bear LLC, and Chief Mountain LLC.
120 MW Capacity and $39.75M Share Deal Reshape Texas Operations
WindHQ retains the remaining 51% stake in the joint venture, maintaining shared ownership while Canaan deepens its operational involvement. The three facilities collectively provide 120 megawatts of energized capacity, supporting sustained activity across multiple installations. They currently generate about 4.4 exahashes per second of total operating hashrate, reinforcing the scale of the assets involved. Consequently, the acquisition increases Canaan’s direct exposure to reliable power sources within a competitive U.S. energy environment.
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Nangeng Zhang, chairman and chief executive officer of Canaan, said the move represents a disciplined expansion of the company’s North American operations. He explained that securing access to operational power assets in Texas enables closer alignment between Canaan’s proprietary mining technology and physical infrastructure. Moreover, Zhang emphasized that the strategy supports efficiency and scalable growth over the long term.
To execute the transaction, Canaan issued 806,439,900 Class A ordinary shares to Cipher. These shares equal 53,762,660 American Depositary Shares priced at $0.7394 each, bringing the total consideration to approximately $39.75 million. The shares remain subject to a six month lock up period, limiting immediate market impact.
In addition, Canaan purchased 6,840 mining machines from Cipher, which had originally sourced the equipment from Canaan in July 2025. Those units were deployed at Cipher’s Black Pearl facility, which is now being converted into an AI and high performance computing data center. The arrangement alters the operational relationship between the companies while consolidating Canaan’s position in Texas.
Shift Toward Direct U.S. Power Strategy
The deal aligns with Canaan’s broader transition toward a structured upstream energy development model focused on direct U.S. power applications and integration with AI and HPC colocation. The company aims to build a substantial project pipeline by the end of 2026. Earlier this month, Canaan reported $196 million in fourth quarter revenue, up 121% year over year. Despite that rebound, its Nasdaq listed shares fell 5.71% on Monday and remain down 41% over the past month.
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