Bitcoin mining manufacturer Canaan purchases Cipher’s stake in West Texas mining projects

Bitcoin mining manufacturer Canaan purchases Cipher’s stake in West Texas mining projects · Blockspace

William Foxley

Tue, February 24, 2026 at 7:33 AM GMT+9 1 min read

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Canaan is deepening its push into U.S. energy infrastructure, acquiring Cipher Mining’s 49% stake in a set of operational West Texas mining projects totaling roughly 4.4 EH/s of hashrate.

Monday, Canaan said it acquired Cipher’s interest in the joint venture comprising Alborz LLC, Bear LLC, and Chief Mountain LLC, collectively referred to as the “ABC Projects.” The sites currently operate 120 megawatts of power capacity and support approximately 4.4 exahashes per second of operating hashrate, with fleet efficiency around 25.7 J/TH . WindHQ LLC continues to hold the majority 51% stake in ABC.

The transaction also includes the purchase of 6,840 Avalon A15Pro mining rigs that were originally sold to Cipher in July 2025 and energized at its Black Pearl site. That facility is now being converted into an AI and high-performance computing (HPC) data center .

Total consideration for the deal is approximately $39.75 million, funded entirely through the issuance of 806,439,900 Canaan Class A ordinary shares to Cipher, equivalent to 53,762,660 ADS priced at $0.7394 per ADS, subject to a six-month lock-up. The structure preserves Canaan’s balance sheet flexibility while making Cipher a significant shareholder.

Strategically, the acquisition gives Canaan direct exposure to 120 MW of fully operational, low-cost power assets in West Texas, with average rates below 3 cents per kWh. The projects operate within ERCOT and include both long-term grid power and off-grid wind integration.

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