Bitcoin mining {hardware} maker Canaan has bought Cipher Mining’s 49% curiosity in a trio of Texas mining initiatives for roughly $39.75 million, increasing the corporate’s mining pursuits.
The transaction covers the three way partnership entities Alborz LLC, Bear LLC and Chief Mountain LLC, collectively often known as the “ABC Initiatives,” in response to a Monday announcement. After the deal, Canaan holds a 49% stake whereas associate WindHQ, a renewable vitality infrastructure firm, retains 51%.
“By rising our publicity to high-quality, low-cost operational energy belongings in Texas, we’re aligning our proprietary know-how with crucial infrastructure to drive long-term effectivity and scale,” stated Nangeng Zhang, chairman and chief government officer of Canaan.
The three amenities are already operational, with a mixed 120 megawatts of energy capability and about 4.4 exahashes per second (EH/s) of hashrate. Canaan additionally acquired 6,840 Avalon A15Pro mining rigs from Cipher. These machines have been beforehand deployed at Cipher’s Black Pearl location, which is now being transformed into a synthetic intelligence and high-performance computing (AI-HPC) information heart.
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Canaan funds cope with $40 million share issuance
The acquisition was financed by way of shares. Canaan issued 806,439,900 Class A shares, equal to 53,762,660 American Depositary Shares (ADS), priced at $0.7394 per ADS and topic to a six-month lockup.
In accordance with the announcement, the Texas websites profit from electrical energy prices beneath $0.03 per kilowatt-hour and embrace wind-powered era and grid demand-response capabilities throughout the ERCOT energy market. “ABC Initiatives function industry-leading energy pricing and provide a robust basis for progress,” Zhang added.
Canaan shares drop 5.7%. Supply: Google Finance
Canaan reported a robust fourth quarter of 2025, with income rising 121.1% year-over-year to $196.3 million, as {hardware} shipments and mining output improved. Bitcoin ($BTC) mining income climbed 98.5% to $30.4 million, lifting its treasury to 1,750 $BTC. The agency shipped a report 14.6 EH/s of computing energy and expanded put in hashrate to 9.91 EH/s, supported by a big institutional order in the USA.
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Bitcoin miners flip to AI as margins tighten
Bitcoin mining companies are more and more branching into AI and cloud computing as profitability pressures mount. Final week, MARA Holdings acquired a 64% stake in French infrastructure firm Exaion, giving the corporate a foothold in AI companies.
The transfer got here amid a broader {industry} pattern. Firms together with Hive, Hut 8, TeraWulf and Iren are changing mining amenities and energy capability into>already transitioned absolutely into AI infrastructure.
Canaan additionally stated the brand new acquisitions align with its initiative to stabilize energy grids amid rising information heart demand.
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