Singapore-based crypto mining firm Canaan Inc. Has expanded its presence in the United States with the acquisition of Cipher Mining Technologies’ 49% equity interest in several operational bitcoin mining sites located in West Texas, a move signaling continued consolidation within the digital asset infrastructure sector. The deal, valued at approximately $39.75 million, was funded through a stock issuance, making Cipher Mining a significant shareholder in Canaan, according to a press release issued Monday.
The acquisition encompasses Cipher Mining’s stake in the ABC Projects – Alborz LLC, Bear LLC, and Chief Mountain LLC – which collectively operate 120 megawatts of power capacity and support approximately 4.4 exahashes per second (EH/s) of total operating hashrate. This expansion allows Canaan to further capitalize on the growing demand for bitcoin mining capacity, particularly in regions with access to affordable energy sources. The sites currently operate with a fleet efficiency of around 25.7 Joules per Terahash (J/TH), with potential for future upgrades, as detailed in a press release.
Transaction Details and Financial Implications
Canaan financed the $39.75 million acquisition by issuing 806,439,900 Class A ordinary shares to Cipher Mining, equivalent to 53,762,660 American Depositary Shares (ADS), priced at $0.7394 per ADS. These shares are subject to a six-month lock-up period. The deal not only increases Canaan’s mining capacity but also diversifies its holdings and strengthens its position in the competitive crypto mining landscape. According to CoinDesk, Canaan shares experienced a 6% decline on Monday following the announcement, while Cipher shares rose by 4%.
The acquired mining rigs, specifically 6,840 Avalon® A15Pro mining rigs, were originally purchased from Canaan in July 2025 and subsequently energized at Cipher’s Black Pearl site. Notably, Cipher is currently transitioning the Black Pearl site into an AI-HPC (Artificial Intelligence – High-Performance Computing) data center, suggesting a strategic shift in the company’s focus beyond solely bitcoin mining.
Geopolitical Context and Regional Stakes
This acquisition occurs against a backdrop of increasing interest in the United States as a key location for bitcoin mining, driven by factors such as relatively stable energy grids and a more defined regulatory environment compared to some other jurisdictions. The West Texas region, in particular, has become a hub for crypto mining operations due to its access to renewable energy sources, including wind and solar power. The involvement of both Singapore-based Canaan and U.S.-based Cipher Mining highlights the growing internationalization of the crypto mining industry. The transaction also reflects a broader trend of consolidation within the sector, as companies seek to achieve economies of scale and enhance their competitive advantage.
Cipher’s Strategic Shift and Canaan’s Expansion
Cipher Mining’s decision to divest its stake in the ABC Projects and focus on converting its Black Pearl site into an AI-HPC data center indicates a strategic pivot towards the burgeoning field of artificial intelligence. This move aligns with a growing trend of crypto mining companies exploring diversification opportunities beyond bitcoin mining, leveraging their existing infrastructure and energy resources to support other computationally intensive applications. Canaan, is solidifying its position as a leading provider of crypto mining hardware and infrastructure, expanding its operational footprint in a key market. The company’s acquisition of additional Avalon A15Pro rigs further demonstrates its commitment to scaling its mining operations.
Cipher is scheduled to report its fourth-quarter earnings before the market opens on February 24, 2026, and investors will be closely watching for further details on the company’s strategic direction and financial performance, as reported by CoinDesk.
Looking Ahead
The completion of this transaction marks a significant step for both Canaan and Cipher Mining, positioning them for future growth in their respective areas of focus. The integration of the ABC Projects into Canaan’s portfolio is expected to enhance the company’s mining capacity and profitability, while Cipher’s transition to AI-HPC data centers could unlock new revenue streams and opportunities. The evolving landscape of the crypto mining industry and the increasing demand for AI computing power suggest that further consolidation and diversification are likely in the coming months.
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