Canaan Buys Cipher’s West Texas Stake and 6,840 Rigs in $39.75M Stock Deal

Canaan expands U.S. footprint, buys Cipher’s West Texas stake and thousands of rigs in $39.75M stock deal Canaan Inc. (NASDAQ: CAN), the China-based bitcoin-mining hardware maker and operator of crypto mining infrastructure, said Monday it acquired Cipher Mining’s (NASDAQ: CIFR) 49% equity interest in a West Texas joint venture for $39.75 million paid in Canaan stock. The deal covers Cipher’s stake in the “ABC Projects” — Alborz LLC, Bear LLC and Chief Mountain LLC — with the remaining interest held by WindHQ. Transaction mechanics and shareholder impact Canaan issued 806.4 million Class A ordinary shares (equal to 53.8 million American depositary shares) to fund the purchase. Those shares are subject to a six-month lock-up. The issuance makes Cipher a major shareholder in Singapore-based Canaan. Market reaction was mixed: Canaan shares dropped about 6% on Monday while Cipher’s stock rose roughly 4%. Cipher’s fourth-quarter results are scheduled for release before markets open on Feb. 24. Assets acquired and operational profile The Texas sites together have 120 MW of energized power capacity and currently contribute roughly 4.4 exahashes per second (EH/s) to bitcoin network hashrate. The fleet’s efficiency is reported at about 25.7 joules per terahash (J/TH), a metric that reflects the energy cost to produce hashing power. Hardware transfer and facility repurpose As part of the agreement, Canaan also purchased 6,840 Avalon A15Pro mining rigs that had been running at Cipher’s Black Pearl facility. Cipher is converting Black Pearl into an AI and high-performance computing (HPC) data center, which helps explain the transfer of mining equipment. Why it matters The move accelerates Canaan’s transition from hardware supplier toward becoming a larger operator of mining capacity in the U.S., while giving Cipher liquidity and a significant equity stake in a global mining-equipment vendor as it pivots part of its asset base toward AI/HPC. For miners and investors, the deal underscores continued asset reshuffling as firms optimize for energy, efficiency and longer-term strategic positioning in both crypto mining and AI infrastructure. Read more AI-generated news on: undefined/news