Bitcoin Miner Canaan Buys Cipher’s Texas Stake, Boosts AI Plans

Canaan Acquires Majority Stake in Three Texas Mining Projects

In a strategic move to integrate low-cost power with high-performance computing, Canaan (CAN) has acquired Cipher Mining Technologies Inc.’s (NASDAQ: CIFR) 49% stake in three fully operational West Texas mining projects. The transaction, valued at approximately $39.75 million, was completed through the issuance of Canaan shares, giving Cipher a significant equity position in Canaan.

The acquired assets include Alborz LLC, Bear LLC, and Chief Mountain LLC, which collectively operate 120 MW of power capacity and deliver 4.4 EH/s of Bitcoin mining hashrate. Additionally, Canaan has acquired 6,840 Avalon® A15Pro-AVG-221T mining rigs deployed at Cipher’s Black Pearl site, which is being transformed into an AI and high-performance computing data center.

One of the key highlights of the deal is the competitive energy cost, with the projects benefiting from sub-3¢ per kWh contracted power in the ERCOT grid. This makes it one of the lowest disclosed rates in the U.S., with off-grid wind power integration at the Alborz site.

Following the acquisition, Canaan’s stock has seen a 10% increase, nearing $0.47 per share.

Canaan’s Control over Power Assets

By gaining direct access to fully operational power assets, Canaan aims to control both electricity supply and infrastructure. This move aligns with the company’s energy strategy of upstream power exposure and AI/HPC colocation.

The partnership with WindHQ LLC, holding a 51% stake in the projects, ensures operational synergy. WindHQ brings expertise in wind energy, data centers, and power infrastructure, enhancing Canaan’s position in the ERCOT market.

The ABC Projects have the capability for demand response and energy arbitrage, allowing Canaan to contribute to grid stabilization while supporting high-intensity compute workloads.

Chairman and CEO Nangeng Zhang stated, “This acquisition represents a disciplined expansion of our North American digital asset footprint and a decisive step in executing Canaan’s broader energy strategy. 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.”

Cipher CEO Tyler Page emphasized the strategic nature of the equity exchange, expressing confidence in Canaan’s vertical integration, technology leadership, and energy platform.

Future Plans for Canaan

Canaan’s recent shift towards an upstream power development model signifies a transition towards a systematic approach from opportunistic, asset-light mining. The company aims to enhance return on invested capital, secure long-term power commitments, and expand its project pipeline potentially at a gigawatt scale.

Throughout 2026, Canaan plans to focus on disciplined execution with partnership-driven expansion and project-level financing. This strategy reinforces the company’s commitment to scalable, capital-efficient growth.

With this acquisition, Canaan consolidates its operational mining capacity and positions itself at the intersection of low-cost energy and next-generation computing. This move aligns the company’s digital asset operations with the growing AI conversion wave in Texas.