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

Bitcoin mining hardware maker Canaan has purchased Cipher Mining’s 49% interest in a trio of Texas mining projects for $39.75 million, expanding its mining interests.

The transaction covers joint venture entities Alborz LLC, Bear LLC and Chief Mountain LLC, together known as the “ABC Projects,” according to a Monday announcement. After the deal, Canaan holds a 49% stake while partner WindHQ, a renewable energy infrastructure company, retains 51%.

“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,” said Nangeng Zhang, chairman and chief executive officer of Canaan.

The three facilities are already operational, with a combined 120 megawatts of power capacity and about 4.4 exahashes per second (EH/s) of hashrate. Canaan also acquired 6,840 Avalon A15Pro mining rigs from Cipher. Those machines were previously deployed at Cipher’s Black Pearl location, which is being converted into an artificial intelligence and high-performance computing (AI-HPC) data center.

Related: Bitcoin mining difficulty rebounds 15% as US miners recover from winter outages

Canaan funds deal with $40 million share issuance

The purchase was financed through shares. Canaan issued 806,439,900 Class A shares, equal to 53,762,660 American Depositary Shares (ADS), priced at $0.7394 per ADS and subject to a six-month lockup.

According to the announcement, the Texas sites benefit from electricity costs below $0.03 per kilowatt-hour and include wind-powered generation and grid demand-response capabilities within the ERCOT power market. “ABC Projects feature industry-leading power pricing and offer a strong foundation for growth,” Zhang added.

Canaan reported a strong fourth quarter of 2025, with revenue rising 121.1% year-on-year to $196.3 million, as hardware shipments and mining output improved. Bitcoin (BTC) mining revenue climbed 98.5% to $30.4 million, increasing its treasury to 1,750 BTC. It shipped a record 14.6 EH/s of computing power and expanded installed hashrate to 9.91 EH/s, supported by a large institutional order in the United States.

Related: Bitcoin miners chase 30 GW AI capacity to offset hashprice pressure

Bitcoin miners turn to AI as margins tighten

Bitcoin mining companies are increasingly branching into AI and cloud computing as profitability pressures mount. Last week, MARA Holdings acquired a 64% stake in French infrastructure company Exaion, giving the company a foothold in AI services.

The move came amid a broader industry trend. Companies including Hive, Hut 8, TeraWulf and Iren are converting mining facilities and power capacity into data-center operations, and some players such as CoreWeave have already transitioned fully into AI infrastructure.