Canaan Buys Cipher’s Stake in Texas Bitcoin Mines

Canaan buys 49% stake in Texas Bitcoin mines, diversifying as industry shifts.

  • Canaan purchased a 49% stake in three operational Texas Bitcoin mining projects from Cipher Mining for $39.75 million, funded by issuing $40 million in shares.
  • The acquired “ABC Projects” provide 120 MW of low-cost power and 4.4 EH/s of hashrate, alongside 6,840 Avalon A15Pro mining rigs.
  • The deal highlights a trend of Bitcoin mining firms diversifying into AI and high-performance computing as mining margins tighten.
  • Canaan reported strong Q4 2025 results, with revenue up 121.1% year-on-year and mining revenue reaching $30.4 million.

Bitcoin mining hardware manufacturer Canaan has significantly expanded its operational footprint by acquiring Cipher Mining’s 49% interest in three Texas mining projects for $39.75 million, according to a Monday announcement. Consequently, Canaan now holds a 49% stake in the joint venture entities, while renewable energy partner WindHQ retains the controlling 51%.

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Canaan’s chairman and CEO, Nangeng Zhang, stated “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.” The newly acquired ABC Projects are already operational, offering a combined 120 megawatts of power capacity and roughly 4.4 exahashes per second of hashrate.

Additionally, Canaan acquired 6,840 Avalon A15Pro mining rigs from Cipher. These machines were previously deployed at a site Cipher is converting into an Artificial Intelligence and high-performance computing data center.

The purchase was financed through the issuance of 806,439,900 Class A shares. The Texas sites benefit from electricity costs below $0.03 per kilowatt-hour within the ERCOT market.

Meanwhile, Canaan reported a strong fourth quarter for 2025. Revenue surged 121.1% year-on-year to $196.3 million, while Bitcoin mining revenue jumped 98.5% to $30.4 million.

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This move reflects a broader industry trend as Bitcoin miners face profitability pressures. Consequently, many are branching into AI and cloud computing services to diversify their revenue streams.

Canaan also noted the acquisitions support its initiative to stabilize power grids amid rising data center demand.

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