The Canaan Inc acquisition of Cipher Mining stake marks a strategic expansion of its operational capacity in West Texas. The transaction secures a 49% interest in the ABC Projects and strengthens the company’s US energy platform.
Canaan Inc. has acquired Cipher’s minority holding in Alborz LLC, Bear LLC and Chief Mountain LLC. These entities operate collectively as the ABC Projects.
Through this agreement, Canaan gains exposure to approximately 120 MW of active power capacity. In addition, the assets currently support around 4.4 EH/s of operating hashrate.
The consideration totals approximately US$39.75 million. However, the company structured the deal entirely in equity. As a result, it issued 806,439,900 Class A shares, equivalent to 53,762,660 ADS, to Cipher Mining Technologies Inc..
Transaction Structure and Equity Consideration
Canaan priced the equity issuance at US$0.7394 per ADS. Consequently, Cipher becomes a significant shareholder, subject to a six-month lock-up.
This approach preserves near-term liquidity. However, it introduces material shareholder dilution. Investors therefore must weigh balance sheet flexibility against equity expansion.
At the time of announcement, CAN shares traded below their 200-day moving average. Moreover, the stock remained close to its 52-week low. Sector peers such as Nano Dimension Ltd. and Corsair Gaming Inc. also showed modest weakness, reflecting broader hardware pressure.
Operational Metrics: 120 MW and 4.4 EH/s Capacity
The ABC Projects operate 120 MW of installed capacity across West Texas sites. Electricity costs average below US$0.03 per kWh. Therefore, the assets rank among the more competitive power structures within ERCOT.
Fleet efficiency stands at approximately 25.7 J/TH. This level supports cost discipline in volatile bitcoin markets.
The deal also includes 6,840 Avalon A15Pro-AVG-221T mining rigs. These units were previously energised at Cipher’s Black Pearl site. Notably, that facility is transitioning into an AI-HPC data centre.
Canaan Inc acquisition of Cipher Mining stake aligns with US energy strategy
The Canaan Inc acquisition of Cipher Mining stake reinforces the company’s pivot toward upstream power participation. Previously, Canaan operated under a relatively asset-light model. Now, it is pursuing greater infrastructure control.
Management intends to build a scalable US project pipeline by the end of 2026. Moreover, the company aims to integrate bitcoin mining with AI-HPC colocation. This hybrid strategy may enhance return on invested capital.
Importantly, the ABC Projects participate in ERCOT demand response programmes. As a result, the sites can provide grid-balancing flexibility. This capability strengthens long-term relationships with Texas power partners.
For further insight into infrastructure-led growth strategies, see our analysis of bitcoin mining vertical integration models.
Market Context and Shareholder Considerations
Recent updates from Canaan demonstrated record treasury balances and hashrate expansion. Nevertheless, the equity market response remained subdued.
The issuance of more than 806 million new shares may pressure valuation multiples. However, access to low-cost, operational power assets improves strategic resilience.
Investors should therefore monitor three variables. First, integration efficiency at the ABC Projects. Second, realised mining margins under current bitcoin prices. Third, progress toward AI-HPC colocation revenue streams.
Strategic Outlook
This acquisition increases operational scale while deepening Canaan’s presence in Texas. Moreover, it strengthens exposure to low-cost, dispatchable power.
Although equity dilution is significant, the transaction secures infrastructure that may underpin future expansion. Over time, disciplined execution will determine whether the added 4.4 EH/s capacity translates into sustained shareholder value.
