Canaan buys 49% stake in three Texas mining sites for $40M

1 month ago

Bitcoin mining hardware shaper Canaan has purchased Cipher Mining’s 49% involvement successful a trio of Texas mining projects for astir $39.75 million, expanding the company’s mining interests.

The transaction covers the associated task entities Alborz LLC, Bear LLC and Chief Mountain LLC, unneurotic known arsenic the “ABC Projects,” according to a Monday announcement. After the deal, Canaan holds a 49% involvement portion spouse WindHQ, a renewable vigor infrastructure company, retains 51%.

“By expanding our vulnerability to high-quality, low-cost operational powerfulness assets successful Texas, we are aligning our proprietary exertion with captious infrastructure to thrust semipermanent ratio and scale,” said Nangeng Zhang, president and main enforcement serviceman of Canaan.

The 3 facilities are already operational, with a combined 120 megawatts of powerfulness capableness and astir 4.4 exahashes per 2nd (EH/s) of hashrate. Canaan besides acquired 6,840 Avalon A15Pro mining rigs from Cipher. Those machines were antecedently deployed astatine Cipher’s Black Pearl location, which is present being converted into an artificial quality and high-performance computing (AI-HPC) information center.

Canaan funds woody with $40 cardinal stock issuance

The acquisition was financed done shares. Canaan issued 806,439,900 Class A shares, adjacent to 53,762,660 American Depositary Shares (ADS), priced astatine $0.7394 per ADS and taxable to a six-month lockup.

According to the announcement, the Texas sites payment from energy costs beneath $0.03 per kilowatt-hour and see wind-powered procreation and grid demand-response capabilities wrong the ERCOT powerfulness market. “ABC Projects diagnostic industry-leading powerfulness pricing and connection a beardown instauration for growth,” Zhang added.

Canaan reported a beardown 4th quarter of 2025, with gross rising 121.1% year-over-year to $196.3 million, arsenic hardware shipments and mining output improved. Bitcoin (BTC) mining gross climbed 98.5% to $30.4 million, lifting its treasury to 1,750 BTC. The steadfast shipped a grounds 14.6 EH/s of computing powerfulness and expanded installed hashrate to 9.91 EH/s, supported by a ample organization bid successful the United States.

Bitcoin miners crook to AI arsenic margins tighten

Bitcoin mining firms are progressively branching into AI and unreality computing arsenic profitability pressures mount. Last week, MARA Holdings acquired a 64% stake successful French infrastructure institution Exaion, giving the institution a foothold successful AI services.

The determination came amid a broader manufacture trend. Companies including Hive, Hut 8, TeraWulf and Iren are converting mining facilities and powerfulness capableness into data-center operations, and immoderate players specified arsenic CoreWeave person already transitioned afloat into AI infrastructure.

Canaan besides said the caller acquisitions align with its inaugural to stabilize powerfulness grids amid rising information halfway demand.

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