Canaan (CAN) has acquired Cipher Mining Technologies Inc.'s (NASDAQ: CIFR) 49% stake in three fully operational West Texas mining projects, marking a significant step in its strategy to integrate low-cost power with high-performance computing.
The transaction, valued at approximately $39.75 million according to a note shared with Bitcoin Magazine, was completed entirely through the issuance of Canaan shares, priced at $0.7394 per American Depositary Share (ADS), giving Cipher a meaningful equity position in Canaan.
Deal Overview: Cipher's 49% Stake in Texas Mining Projects
The assets acquired — Alborz LLC, Bear LLC, and Chief Mountain LLC — operate a combined 120 MW of power capacity and deliver a total of 4.4 EH/s of Bitcoin mining hashrate. The acquisition also includes 6,840 Avalon® A15Pro-AVG-221T mining rigs, originally purchased from Canaan in mid-2025 and deployed at Cipher's Black Pearl site, which is now being converted into an AI and high-performance computing (HPC) data center.
A key feature of the deal is the highly competitive energy cost. The projects benefit from sub-3¢ per kWh contracted power in the ERCOT grid, among the lowest disclosed rates in the U.S., and integrate off-grid wind power at the Alborz site. Canaan's stock is up 10% today near $0.47 a share.
Energy Advantage: Sub-3¢/kWh and Off-Grid Wind
By acquiring direct access to fully operational power assets, the company said they position themselves to control both electricity supply and infrastructure, a move that reflects its broader energy strategy of upstream power exposure and AI/HPC colocation.
Partnership with WindHQ LLC, which maintains a 51% stake in the projects, ensures operational synergy. WindHQ brings experience in wind energy, data centers, and power infrastructure, providing Canaan with local expertise and operational efficiency in the ERCOT market. The ABC Projects are capable of demand response and energy arbitrage, enabling the company to contribute to grid stabilization while supporting flexible, high-intensity compute workloads.
Management Commentary and Strategic Rationale
“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 CEO. “By increasing our exposure to high-quality, low-cost operational power assets in Texas, we align our proprietary technology with critical infrastructure to drive long-term efficiency and scale. We are also honored to welcome Cipher as a significant shareholder, deepening a relationship built on shared governance and strategic vision.”
Cipher CEO Tyler Page highlighted the strategic nature of the equity exchange. “We were willing to take a meaningful position in Canaan because we see significant opportunity ahead. Canaan's vertical integration, technology leadership, and energy platform make them the right steward for the next phase of growth,” he said.
Transition: From Asset-Light to Upstream Power Control
The company's recent shift toward an upstream power development model signals a transition from opportunistic, asset-light mining toward a systematic approach. By integrating Bitcoin mining with AI-HPC colocation, the company aims to enhance return on invested capital, secure substantial long-term power commitments, and expand a project pipeline potentially at gigawatt scale. Throughout 2026, the company plans disciplined execution with partnership-driven expansion and project-level financing, reinforcing its focus on scalable, capital-efficient growth.
With this acquisition, Canaan not only consolidates operational mining capacity but also positions itself at the intersection of low-cost energy and next-generation computing, aligning its digital asset operations with the accelerating AI conversion wave in Texas.