Canaan Inc. completed a $39.75 million transaction that gave it a 49 percent equity interest in Cipher Mining Technologies Inc.’s joint venture, the ABC Projects, which includes Alborz LLC, Bear LLC, and Chief Mountain LLC. The deal also transferred 6,840 Avalon A15Pro mining rigs from Cipher to Canaan. The transaction was financed by issuing 806,439,900 ordinary shares, equivalent to 53,762,660 American Depositary Shares, priced at $0.7394 per ADS with a six‑month lock‑up.
The ABC Projects operate 120 MW of power capacity and generate about 4.4 exahashes per second of Bitcoin hashrate, with a fleet efficiency of roughly 25.7 J/TH. The rigs that Canaan acquired were originally purchased from Canaan in July 2025 and were energized at Cipher’s Black Pearl site, which is being converted into an AI‑HPC data center.
Canaan’s CEO, Nangeng Zhang, said, “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 acquisition expands Canaan’s footprint in Texas and strengthens its position in the high‑power mining market, fitting into the company’s broader energy strategy of building a pipeline of power‑dense sites that can serve both mining and AI workloads.
Cipher, which is rebranding as Cipher Digital, views the deal as a step toward its AI‑HPC pivot. The company stated that the transaction “simplifies the business structure, maintains optimized exposure to the bitcoin mining industry in a capital‑light manner, and accelerates the strategic transition.” By divesting non‑core mining assets, Cipher can focus on converting sites like Black Pearl into hyperscale data centers for AI workloads.
The acquisition comes amid recent earnings reports that highlight the financial pressures facing both firms. Cipher reported a Q4 2025 GAAP net loss of $734 million, largely driven by impairments and losses, and missed both EPS and revenue estimates. Canaan’s Q4 2025 earnings showed an EPS of –$0.13, missing the –$0.06 consensus, but revenue of $196.27 million beat the $25.30 million estimate, reflecting a sharp rebound from $88.8 million in Q4 2024.
Investors reacted to the transaction with concern over dilution for Canaan, while Cipher’s shares were well received as the deal signals a clear shift toward AI and HPC. The deal reflects a broader industry trend in which mining operators are diversifying into high‑performance computing to mitigate Bitcoin‑price volatility and capitalize on growing demand for AI infrastructure.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.