Canaan’s acquisition of Cipher Mining Technologies Inc. (NASDAQ: CIFR), a 49% share in three West Texas mines that are fully operational, marks a major step forward in Canaan’s strategy to combine low-cost energy with high-performance computer.
According to an email shared, the transaction is valued at about $39.75million. Bitcoin Magazine, Cipher gained a significant equity stake in Canaan through the issuing of Canaan American Depository Shares at a price of $0.7394. Canaan.
The assets acquired — Alborz LLC, Bear LLC, and Chief Mountain LLC — operate a combined 120 MW of power capacity and deliver a total of 4.4 EH/s of Bitcoin mining hashrate. The acquisition also includes 6,840 Avalon® A15Pro-AVG-221T mining rigs, originally purchased from Canaan in mid-2025 and deployed at Cipher’s Black Pearl site, which is now being converted into an AI and high-performance computing (HPC) data center.
The highly competitive pricing is a key element of this deal. energy cost. The projects benefit from sub-3¢ per kWh contracted power in the ERCOT grid, among the lowest disclosed rates in the U.S., and integrate off-grid wind power at the Alborz site.
Canaan’s stock is up Today, 10% of the share price is nearing $0.47.
Canaan: Control over power assets
The company stated that by acquiring access to fully-operational power assets they are able to take control of both the electricity supply as well as infrastructure. This is part of its overall energy strategy, which includes upstream exposure to power and AI/HPC Colocation.
WindHQ LLC maintains 51% of the project stake, ensuring operational synergy. WindHQ has experience in data centers and power infrastructure. This provides Canaan expertise in local markets and efficiency.
ABC Projects can perform demand response, energy arbitrage and support flexible high-intensity computing workloads.
“This acquisition represents a disciplined expansion of our North American digital asset footprint and a decisive step in executing Canaan’s broader energy strategy,” Nangeng Zhao, CEO and Chairman of the Board. “By increasing our exposure to high-quality, low-cost operational power assets in Texas, we align our proprietary technology with critical infrastructure to drive long-term efficiency and scale. We are also honored to welcome Cipher as a significant shareholder, deepening a relationship built on shared governance and strategic vision.”
Tyler Page, the CEO of Cipher Capital Exchange, spoke about the strategic importance of an equity exchange. “We were willing to take a meaningful position in Canaan because we see significant opportunity ahead. Canaan’s vertical integration, technology leadership, and energy platform make them the right steward for the next phase of growth,” “He said”
Recent shifts by the company to an upstream model of power development signal a move away from asset-light, opportunistic mining towards a more systematic approach.
Integrating Bitcoin mining and AI-HPC Colocation will allow the company to maximize return on capital invested, ensure substantial power contracts for long term, as well as expand its project pipeline, potentially up to gigawatts.
In 2026, the firm plans to execute with discipline, focusing on partnership-driven growth, project financing and capital efficiency.
Canaan consolidates its operational mining capabilities and positions itself as a leader in low-cost computing. It also aligns with Texas’ AI-driven conversion waves.
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Source: bitcoinmagazine.com
