Bitcoin mining hardware manufacturer Canaan has purchased a 49% equity stake in three operating mining facilities in West Texas for $39.75 million, expanding its involvement in infrastructure tied directly to active mining operations.
The transaction covers joint venture entities Alborz LLC, Bear LLC and Chief Mountain LLC, collectively referred to as the ABC Projects. The remaining 51% stake is held by renewable energy infrastructure company WindHQ.
The assets were acquired from Cipher Mining, which previously held the minority interest in the projects.
As part of the agreement, Canaan also acquired 6,840 Avalon A15Pro mining rigs that had been deployed at Cipher’s Black Pearl site. That location is being converted into an artificial intelligence and high-performance computing data center.
“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.
According to the company, the Texas facilities benefit from electricity costs below $0.03 per kilowatt-hour and participate in demand-response programs within the ERCOT market.
“ABC Projects feature industry-leading power pricing and offer a strong foundation for growth,” Zhang added.
Share issuance used to fund the acquisition
The facilities operate with a combined energized power capacity of about 120 megawatts and support roughly 4.4 exahashes per second of hashrate. The purchase was financed through equity rather than cash. Canaan issued 806,439,900 Class A ordinary shares, equal to 53,762,660 American Depositary Shares priced at $0.7394 per ADS.
The newly issued shares are subject to a six-month lockup period.
Through the transaction, Cipher becomes a significant shareholder in Canaan after transferring its stake in the joint venture.
"We are proud of the role we played in developing the ABC Projects and bringing them to their current operational stage. Given that history, it was important for us to transition the assets to an industry leader capable of advancing the long-term vision we established for these sites," said Tyler Page, CEO of Cipher.
Operational data released alongside the announcement shows the mining fleet tied to the projects runs at approximately 25.7 joules per terahash, a level typical of latest-generation mining equipment used in large industrial deployments.
Canaan reports growth in mining and hardware shipments
The acquisition follows a strong fourth quarter reported by Canaan for 2025. The company said revenue increased 121.1% year over year to $196.3 million as hardware shipments and mining activity rose during the period.
Mining revenue reached $30.4 million, and the company expanded its bitcoin treasury to about 1,750 BTC. Canaan also reported shipping a record 14.6 EH/s of computing power and increasing installed hashrate to about 9.91 EH/s, supported by a large institutional order in the United States.
Mining sites increasingly linked to AI infrastructure
Some bitcoin mining companies have begun converting facilities or allocating power capacity toward artificial intelligence and data-center workloads. The transition of Cipher’s Black Pearl site into an AI and high-performance computing facility reflects this shift.
Recently, MARA Holdings acquired a majority stake in French infrastructure provider Exaion to expand into AI services.
Other operators including Hive Digital Technologies, Hut 8, TeraWulf and Iren have also converted or repurposed mining capacity for data-center operations tied to AI workloads. Infrastructure provider CoreWeave now operates fully as an AI computing company after earlier involvement in crypto-related infrastructure.
Recent events have also showed how sensitive large mining operations can be to energy disruptions.
During a severe winter storm that affected much of the United States earlier this year, Bitcoin’s total network hashrate briefly fell from about 1,120 EH/s to roughly 663 EH/s before recovering, according to data from CoinWarz. The weather event disrupted electricity supply across dozens of states and temporarily pushed the network’s computing power back toward mid-2025 levels.
With the United States accounting for close to 38% of global Bitcoin mining capacity, shifts in regional energy conditions can have an immediate effect on production and network activity.
Oleksii Shumak
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