Canaan (CAN) has acquired Cipher Mining Technologies Inc.’s (NASDAQ: CIFR ) 49% stake in three fully operational West Texas mining projects, marking an important step in its strategy to combine low-cost power with high-performance computing.
The transaction, valued at approximately $39.75 million, according to the note shared with it Bitcoin Magazine, was completely offset by the issuance of Canaan shares, priced at $0.7394 per American Depositary Share (ADS), giving Cipher a meaningful equity position in Canaan.
The acquired assets – Alborz LLC, Bear LLC, and Chief Mountain LLC – use a combined capacity of 120 MW and deliver a total of 4.4 EH/s of Bitcoin mining hashrate. The purchase also includes 6,840 Avalon® A15Pro-AVG-221T mining rigs, originally purchased from Canaan in mid-2025 and deployed at Cipher’s Black Pearl facility, 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 costs. The projects benefit from a sub-3¢ per kWh energy contract on the ERCOT grid, among the lowest disclosed rates in the US, and include off-grid wind power at the Alborz site.
Kanan shares are up 10% today near $0.47 a share.
Canaan: Control over energy assets
By gaining direct access to full-service power assets, the company said it has placed itself in control of both power supply and infrastructure, a move that reflects its broader power strategy of upstream power exposure and AI/HPC diversification.
Cooperation with WindHQ LLC, which retains a 51% stake in the projects, ensures operational synergy. WindHQ brings expertise in wind energy, data centers, and energy infrastructure, providing Canaan with local expertise and efficiency in the ERCOT market.
ABC’s projects are capable of demand response and energy solutions, enabling the company to contribute to grid stability while supporting dynamic, peak workloads.
“This acquisition represents a systematic expansion of our North American digital assets and a decisive step in implementing Canaan’s comprehensive energy strategy,” said Nangeng Zhang, chairman and CEO. “By increasing our exposure to high-quality, low-cost energy assets in Texas, we are aligning 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 management and strategic vision.”
Cipher CEO Tyler Page highlighted the exchange’s strategic approach to equity. “We were willing to take a strategic position in Canaan because we see a significant opportunity ahead. Canaan’s strategic integration, technology leadership, and power platform make them the right managers for the next phase of growth,” he said.
The company’s recent shift to an offshore energy development model reflects a transition from a narrow, commodity-light mine to a more systematic approach.
By combining Bitcoin mining with AI-HPC classification, the company aims to improve return on investment, secure large long-term energy commitments, and expand the project pipeline possibly to the gigawatt scale.
Throughout 2026, the company plans to act systematically through partnership-driven expansion and project-level financing, reinforcing its focus on reliable, cost-effective growth.
With this acquisition, Canaan is not only consolidating its mining capabilities but also positioning itself for cheap energy and next-generation computing, aligning its digital asset operations with the rapid wave of AI transformation in Texas.
