Canaan Acquires 49% Stake in Texas Bitcoin Mining Sites for $40 Million

Canaan has agreed to purchase a 49% stake in three operational Bitcoin mining facilities in Texas for approximately $39.75 million, marking a strategic shift toward deeper infrastructure ownership. The assets, previously held by Cipher Mining, operate under joint venture entities known as Alborz LLC, Bear LLC and Chief Mountain LLC, collectively referred to as the ABC Projects.

Following the transaction, renewable energy partner WindHQ will retain a 51% controlling interest. The three sites together provide 120 megawatts of energized capacity and generate roughly 4.4 exahashes per second (EH/s) of hashrate.

Deal Structure and Operational Details

The acquisition was financed through the issuance of 806,439,900 Class A shares, equivalent to 53,762,660 American Depositary Shares priced at $0.7394 per ADS, subject to a six-month lockup. Canaan also acquired 6,840 Avalon A15Pro mining machines previously deployed at Cipher’s Black Pearl facility.

The Texas projects reportedly benefit from electricity costs below $0.03 per kilowatt hour and participate in the ERCOT power market with wind energy integration and demand-response capabilities. The move underscores Canaan’s strategy to pair proprietary mining hardware with low-cost energy infrastructure as competition intensifies across the Bitcoin mining sector.

Disclaimer

This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.