Canaan Inc. has taken a 49% equity interest in Cipher Mining Technologies’ Texas joint venture, known as the ABC Projects, which operates 120 MW of power and supports roughly 4.4 exahashes per second of active hashrate. The remaining 51% stake is held by WindHQ LLC, so the deal gives Canaan a significant, but not majority, ownership position in the operation.
The transaction was financed with 806,439,900 shares of Canaan’s Class A ordinary stock, valued at $0.7394 per share and subject to a six‑month lock‑up. In addition to the equity, Canaan acquired 6,840 Avalon A15Pro‑AVG‑221T mining rigs that Cipher had purchased in July 2025 and energized at its Black Pearl site, which is being converted into an AI‑HPC data center. The rigs have an efficiency of about 25.7 J/TH, and the total consideration for the deal was approximately $39.75 million.
Canaan’s management said the acquisition strengthens its vertical integration strategy by adding a low‑cost, high‑efficiency power asset and a sizable fleet of mining hardware. The move expands the company’s North American footprint and supports its goal of scaling self‑mining operations while diversifying revenue streams beyond ASIC sales.
"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," said Nangeng Zhang, Canaan’s Chairman and CEO. "ABC Projects feature industry‑leading power pricing and offer a strong foundation for growth."
Investors reacted to the dilution risk associated with the share issuance, while Cipher’s shareholders viewed the transaction favorably as it aligns with the company’s pivot to high‑performance computing and AI hosting. The Black Pearl site’s conversion to an AI‑HPC data center underscores Cipher’s strategic shift away from pure mining.
Canaan reported $196.3 million in revenue for Q4 2025, up 121.1% year‑over‑year, but posted a net loss. The company has guided Q1 2026 revenue to $60 million–$70 million. Cipher Mining’s Q3 2025 earnings per share were $0.10, and Q4 2025 earnings were –$1.92 per share, reflecting the company’s transition to AI‑HPC. The acquisition aligns with Cipher’s broader strategy to divest mining assets and focus on higher‑margin computing services.
The deal positions Canaan to leverage low‑cost power and high‑efficiency hardware, while Cipher moves away from mining to concentrate on AI‑HPC, mirroring a wider industry trend toward diversified, high‑margin data‑center operations.
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