Canaan, a manufacturer of hardware for bitcoin mining, expanded its mining activities by paying $39.75 million to acquire Cypher Mining’s 49% stake in three Texas mining projects.
According to a Monday release, the deal involves joint venture companies Alborz LLC, Bear LLC, and Chief Mountain LLC, collectively referred to as the “ABC Projects.” Following the transaction, partner WindHQ, a provider of renewable energy infrastructure, keeps 51% of the business, while Canaan owns 49%.
With a combined power capacity of 120 megawatts and a hashrate of roughly 4.4 exahashes per second (EH/s), the three facilities are already up and running.
Additionally, Cypher sold 6,840 Avalon A15Pro mining equipment to Canaan. These computers were originally installed at Cipher’s Black Pearl site, which is being transformed into a data center for artificial intelligence and high-performance computing (AI-HPC).
Shares were used to finance the transaction. Canaan issued 806,439,900 Class A shares, or 53,762,660 American Depositary Shares (ADS), with a six-month lockup and a price of $0.7394 per ADS.
The release states that the Texas locations combine wind-powered generation and grid demand-response capabilities within the ERCOT power market and that they benefit from electricity rates below $0.03 per kilowatt-hour.
As gear shipments and mining output improved, Canaan announced a good fourth quarter of 2025, with revenue increasing 121.1% year over year to $196.3 million.
The treasury of Bitcoin increased to 1,750 BTC as mining earnings increased 98.5% to $30.4 million. With the help of a sizable institutional order in the US, it shipped a record 14.6 EH/s of processing power and increased the installed hashrate to 9.91 EH/s.
As pressure on profitability increases, Bitcoin mining companies are expanding into cloud computing and artificial intelligence. MARA Holdings gained a foothold in AI services last week when it purchased a 64% investment in Exaion, a French infrastructure business.
The action followed a larger trend in the sector. Mining facilities and electricity capacity are being converted into data centre operations by companies like Hive, Hut 8, TeraWulf, and Iren, and certain players like CoreWeave have already made the complete switch to AI infrastructure.
The latest acquisitions, according to Canaan, are in line with its plan to stabilize electricity systems in the face of growing demand for data centres.
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