Canaan Buys Cipher’s 49% Stake in West Texas Bitcoin Mining JV in $39.75 Million Stock Deal

The all‑stock purchase gives Canaan direct access to 120 MW of low‑cost ERCOT power, signaling a pivot toward owned U.S. capacity with AI/HPC colocation.

Overview

Canaan completed the acquisition on Feb. 23, taking a 49% interest in the ABC Projects as WindHQ retains 51%.
The consideration totals about $39.75 million paid via 806,439,900 Class A shares (approximately 53.8 million ADS) issued to Cipher under a six‑month lock‑up, making Cipher a significant Canaan shareholder.
The ABC Projects operate 120 MW supporting roughly 4.4 EH/s at about 25.7 J/TH, with contracted power priced below 3¢/kWh and off‑grid wind integration at Alborz enabling ERCOT demand response and energy arbitrage.
Canaan also acquired 6,840 Avalon A15Pro rigs that had run at Cipher’s Black Pearl site, which Cipher is converting into an AI/HPC data center.
Executives framed the move as part of Canaan’s shift toward upstream power ownership and AI/HPC colocation through 2026, while Cipher reallocates capacity toward AI/HPC.