Canaan (CAN) Stock: Buys Cipher’s Texas Mining Stake in $39.75M Power Play

TLDR

• Canaan pays $39.75M to take Cipher’s stake in key Texas mining ventures.
• ABC Projects deliver 120MW and 4.4 EH/s with strong 25.7 J/TH efficiency.
• Deal uses 806.4M Class A shares, equal to about 53.8M ADS, locked up.
• Canaan adds 6,840 Avalon A15Pro rigs as Cipher pivots Black Pearl toward AI.
• Grid-ready ERCOT demand response and wind power help cut costs and risk.

Canaan advanced its expansion plan as it purchased Cipher’s 49% interest in three Texas mining ventures for $39.75 million. The move strengthened its direct control of operational power assets while supporting a wider shift toward diversified computing models. Moreover, the deal positioned Canaan to scale long-term mining output while adding key infrastructure advantages.

Canaan Expands Ownership of Texas Mining Ventures

Canaan completed the purchase of Cipher’s interest in Alborz, Bear and Chief Mountain, which operate under the ABC Projects. The company now holds 49% of the ventures, and partner WindHQ maintains 51%. Additionally, the sites continue running at full capacity and support stable mining performance.

The ABC Projects deliver 120 megawatts of power capacity and operate roughly 4.4 EH/s of energized hashrate. Their average efficiency of 25.7 joules per terahash provides a competitive advantage within the region. Furthermore, the facilities rely on low-cost power structures that strengthen long-term output stability.

Canaan supported the deal through a share-based transaction valued at $39.75 million. It issued 806.4 million Class A shares, equal to about 53.8 million ADS. The shares include a six-month lock-up period and reflect a strategic capital allocation plan.

Canaan Acquires Mining Rigs as AI Transitions Accelerate

Canaan also purchased 6,840 Avalon A15Pro rigs that Cipher previously deployed at the Black Pearl site. The location is now shifting to AI and high-performance computing as Cipher repurposes capacity. The rigs enhance Canaan’s existing fleet under its broader operational strategy.

Black Pearl remains central to Cipher’s data-center plan and ties to future AI demand. The project includes long-term leasing arrangements linked to enterprise cloud platforms. As a result, Cipher continues redirecting mining resources toward new revenue models.

Canaan noted that the ABC Projects include systems integrated with ERCOT demand-response programs. These systems enable flexible operations during regional power fluctuations and support stable performance. In addition, the presence of wind-powered assets further reduces operating costs across the sites.

Canaan Strengthens Position as Mining Sector Shifts to AI

Canaan reported strong fourth-quarter results for 2025 as revenue climbed 121% to $196.3 million. Mining revenue rose sharply and expanded the company’s treasury to 1,750 BTC. It shipped record computing volume totaling 14.6 EH/s.

Several mining companies continue moving toward AI and cloud services as margins tighten. Firms such as Hive, Hut 8, TeraWulf and Iren are converting facilities into data-center operations.  The sector is broadening its focus beyond traditional mining.

Canaan said its new acquisitions reinforce efforts to stabilize power usage as digital infrastructure demand increases. The company supports grid efficiency while positioning its assets for evolving compute trends. Canaan continues strengthening its footprint across high-value power regions.

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