Canaan invests $40M to acquire 49% ownership in trio of Texas crypto mining operations
In a strategic move beyond manufacturing, Canaan secures minority ownership in three active Bitcoin mining sites in Texas, commanding 120 MW capacity and 4.4 EH/s computational power.
Hardware manufacturer Canaan, known for Bitcoin mining equipment, has acquired a 49% ownership stake from Cipher Mining in three Texas-based mining operations for approximately $39.75 million, marking a significant expansion of the firm's mining portfolio.
The deal encompasses joint venture companies Alborz LLC, Bear LLC and Chief Mountain LLC, collectively referred to as the "ABC Projects," as stated in an announcement released Monday. Following completion of the acquisition, Canaan now owns 49% of the ventures while its partner WindHQ, which specializes in renewable energy infrastructure, maintains the majority 51% stake.
By increasing our exposure to high-quality, low-cost operational power assets in Texas, we are aligning our proprietary technology with critical infrastructure to drive long-term efficiency and scale.
Nangeng Zhang, chairman and chief executive officer of Canaan
The trio of mining sites are currently in full operation, boasting a total power capacity of 120 megawatts and generating approximately 4.4 exahashes per second (EH/s) in hashrate. As part of the transaction, Canaan also obtained 6,840 Avalon A15Pro mining machines from Cipher. These units had been previously operating at Cipher's Black Pearl facility, which is currently undergoing transformation into a data center focused on artificial intelligence and high-performance computing (AI-HPC) applications.
Canaan funds deal with $40 million share issuance
The acquisition was completed through an equity-based transaction. Canaan issued a total of 806,439,900 Class A shares, equivalent to 53,762,660 American Depositary Shares (ADS), with a price point of $0.7394 per ADS and accompanied by a six-month lockup restriction.
The announcement revealed that the Texas locations enjoy electricity pricing under $0.03 per kilowatt-hour and incorporate wind energy generation along with grid demand-response functionality within the ERCOT electricity market. "ABC Projects feature industry-leading power pricing and offer a strong foundation for growth," Zhang added.
Canaan disclosed robust performance in the fourth quarter of 2025, recording revenue growth of 121.1% year-over-year to reach $196.3 million, driven by enhanced hardware shipments and increased mining production. Revenue from Bitcoin (BTC) mining operations surged 98.5% to $30.4 million, boosting its Bitcoin holdings to 1,750 BTC. The company delivered a record-breaking 14.6 EH/s of computational capacity and grew its installed hashrate to 9.91 EH/s, bolstered by a substantial institutional purchase in the United States.
Bitcoin miners turn to AI as margins tighten
Cryptocurrency mining companies are progressively diversifying into AI and cloud computing operations as profit margins face increasing pressure. In the previous week, MARA Holdings completed the purchase of a 64% ownership position in Exaion, a French infrastructure provider, establishing the company's presence in AI service offerings.
This transaction reflects a wider industry movement. Numerous companies including Hive, Hut 8, TeraWulf and Iren are repurposing mining infrastructure and energy resources for data-center applications, while certain operators such as CoreWeave have completely shifted their focus to AI infrastructure development.
Canaan further indicated that these new acquisitions support its broader strategy to contribute to power grid stability in response to increasing demand from data center expansion.