Canaan Acquires Cipher Mining’s 49% Stake in Texas Mining Amenities

Bitcoin mining {hardware} maker Canaan has bought Cipher Mining’s 49% curiosity in a trio of Texas mining tasks for $39.75 million, increasing its mining pursuits.

The transaction covers three way partnership entities Alborz LLC, Bear LLC and Chief Mountain LLC, collectively often known as the “ABC Initiatives,” in accordance with a Monday announcement. After the deal, Canaan holds a 49% stake whereas companion WindHQ, a renewable vitality infrastructure firm, retains 51%.

“By growing our publicity to high-quality, low-cost operational energy belongings in Texas, we’re aligning our proprietary expertise with important infrastructure to drive long-term effectivity and scale,” stated Nangeng Zhang, chairman and chief govt officer of Canaan.

The three amenities are already operational, with a mixed 120 megawatts of energy capability and about 4.4 exahashes per second (EH/s) of hashrate. Canaan additionally acquired 6,840 Avalon A15Pro mining rigs from Cipher. These machines have been beforehand deployed at Cipher’s Black Pearl location, which is being transformed into a man-made intelligence and high-performance computing (AI-HPC) knowledge middle.

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Canaan funds cope with $40 million share issuance

The acquisition was financed by means of 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 topic to a six-month lockup.

In response to the announcement, the Texas websites profit from electrical energy prices beneath $0.03 per kilowatt-hour and embody wind-powered era and grid demand-response capabilities throughout the ERCOT energy market. “ABC Initiatives characteristic industry-leading energy pricing and provide a powerful basis for progress,” Zhang added.

Canaan reported a powerful fourth quarter of 2025, with income rising 121.1% year-on-year to $196.3 million, as {hardware} shipments and mining output improved. Bitcoin (BTC) mining income climbed 98.5% to $30.4 million, growing its treasury to 1,750 BTC. It shipped a file 14.6 EH/s of computing energy and expanded put in hashrate to 9.91 EH/s, supported by a big institutional order in the USA.

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Bitcoin miners flip to AI as margins tighten

Bitcoin mining firms are more and more branching into AI and cloud computing as profitability pressures mount. Final week, MARA Holdings acquired a 64% stake in French infrastructure firm Exaion, giving the corporate a foothold in AI providers.

The transfer got here amid a broader {industry} pattern. Firms together with Hive, Hut 8, TeraWulf and Iren are changing mining amenities and energy capability into data-center operations, and a few gamers akin to CoreWeave have already transitioned totally into AI infrastructure.