Canaan Inc. has acquired Cipher Mining’s 49% interest in a joint venture comprising three operational bitcoin mining projects in West Texas, the company announced Monday.
According to a press release, the acquisition gives Canaan a 49% stake in the ABC Projects, which comprises Alborz LLC, Bear LLC, and Chief Mountain LLC. The remaining 51% stake in ABC is maintained by WindHQ, with which Canaan has partnered.
The sites feature 120 MW of power capacity and support around 4.4 EH/s of total operating hashrate, the statement said.
“This acquisition represents a disciplined expansion of our North American digital asset footprint and a decisive step in executing Canaan’s broader energy strategy,” said Nangeng Zhang, chairman and chief executive officer of Canaan. “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.”
As part of the deal, Canaan issued 806,439,900 Class A ordinary shares to Cipher. These are equivalent to 53,762,660 American Depositary Shares (ADS), priced at $0.7394 per ADS, to a total consideration of about $39.75 million. The shares are subject to a six-month lock-up period.
Canaan also purchased an additional 6,840 mining rigs from Cipher, which were originally acquired from Canaan in July 2025 and deployed at Cipher’s Black Pearl site. That facility is being repurposed into an AI-HPC data center.
“We are also honored to welcome Cipher as a significant shareholder,” Zhang added. “This deepened relationship not only reflects our shared commitment to robust corporate governance but also allows us to support Cipher’s impressive evolution into a key player in the AI and HPC sectors.”
New focus
The deal aligns with Canaan’s shift toward a systematic upstream energy development model from an opportunistic, asset-light power approach, the company said.
This new approach focuses on direct U.S. power applications and integrating bitcoin mining with AI-HPC colocation. The company said it aims to build a project pipeline for substantial load by the end of 2026, potentially at a gigawatt scale.
Earlier this month, Canaan reported a major rebound in fourth-quarter financial results, posting $196 million in revenue. This is up 121% from a year earlier and marks the company’s strongest quarterly sales in three years. The uptick in mining machine sales largely contributed to the growth.
Meanwhile, Canaan’s Nasdaq-listed stock closed down 5.71% on Monday, according to The Block’s stock price page. It has fallen 41% over the past month.
© 2026 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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