Canaan (CAN) has acquired Cipher Mining Applied sciences Inc.’s (NASDAQ: CIFR) 49% stake in three totally operational West Texas mining initiatives, marking a big step in its technique to combine low-cost energy with high-performance computing.
The transaction, valued at roughly $39.75 million, in line with a notice shared with Bitcoin Journal, was accomplished solely by the issuance of Canaan shares, priced at $0.7394 per American Depositary Share (ADS), giving Cipher a significant fairness place in Canaan.
The belongings acquired — Alborz LLC, Bear LLC, and Chief Mountain LLC — function a mixed 120 MW of energy capability and ship a complete of 4.4 EH/s of Bitcoin mining hashrate. The acquisition additionally consists of 6,840 Avalon® A15Pro-AVG-221T mining rigs, initially bought from Canaan in mid-2025 and deployed at Cipher’s Black Pearl website, which is now being transformed into an AI and high-performance computing (HPC) knowledge heart.
A key function of the deal is the extremely aggressive vitality value. The initiatives profit from sub-3¢ per kWh contracted energy within the ERCOT grid, among the many lowest disclosed charges within the U.S., and combine off-grid wind energy on the Alborz website.
Canaan’s inventory is up 10% right now close to $0.47 a share.
Canaan: Management over energy belongings
By buying direct entry to completely operational energy belongings, the corporate mentioned they place themselves to regulate each electrical energy provide and infrastructure, a transfer that displays its broader vitality technique of upstream energy publicity and AI/HPC colocation.
Partnership with WindHQ LLC, which maintains a 51% stake within the initiatives, ensures operational synergy. WindHQ brings expertise in wind vitality, knowledge facilities, and energy infrastructure, offering Canaan with native experience and operational effectivity within the ERCOT market.
The ABC Tasks are able to demand response and vitality arbitrage, enabling the corporate to contribute to grid stabilization whereas supporting versatile, high-intensity compute workloads.
“This acquisition represents a disciplined growth of our North American digital asset footprint and a decisive step in executing Canaan’s broader vitality technique,” mentioned Nangeng Zhang, chairman and CEO. “By growing our publicity to high-quality, low-cost operational energy belongings in Texas, we align our proprietary expertise with essential infrastructure to drive long-term effectivity and scale. We’re additionally honored to welcome Cipher as a big shareholder, deepening a relationship constructed on shared governance and strategic imaginative and prescient.”
Cipher CEO Tyler Web page highlighted the strategic nature of the fairness trade. “We had been prepared to take a significant place in Canaan as a result of we see important alternative forward. Canaan’s vertical integration, expertise management, and vitality platform make them the appropriate steward for the following part of progress,” he mentioned.
The corporate’s latest shift towards an upstream energy improvement mannequin indicators a transition from opportunistic, asset-light mining towards a scientific strategy.
By integrating Bitcoin mining with AI-HPC colocation, the corporate goals to boost return on invested capital, safe substantial long-term energy commitments, and broaden a challenge pipeline probably at gigawatt scale.
All through 2026, the corporate plans disciplined execution with partnership-driven growth and project-level financing, reinforcing its concentrate on scalable, capital-efficient progress.
With this acquisition, Canaan not solely consolidates operational mining capability but additionally positions itself on the intersection of low-cost vitality and next-generation computing, aligning its digital asset operations with the accelerating AI conversion wave in Texas.