Canaan Expands Texas Mining Footprint with 49% ABC Stake

Nasdaq-listed crypto mining company Canaan Inc. is expanding its North American operations. The company acquired Cipher Mining Technologies’ 49% equity in the ABC Projects, comprising Alborz, Bear, and Chief Mountain LLC, giving Canaan direct access to 120 MW of fully operational power in West Texas. 

As per the official release, the Texas sites together can mine about 4.4 exahashes per second, a measure of how much Bitcoin computing power they have. Their current equipment runs efficiently, but there’s still room to improve with upgrades. 

Additionally, Canaan bought 6,840 Avalon A15Pro-AVG-221T mining rigs from Cipher. These machines were first used at Cipher’s Black Pearl site, which is now being converted into a data center for advanced AI and high-performance computing.

Canaan financed the $39.75 million deal by issuing 806.4 million Class A shares to Cipher, which equals 53.76 million American Depositary Shares at $0.7394 each. These shares will be locked for six months before they can be traded. 

Nangeng Zhang, Canaan’s Chairman and CEO, highlighted the move’s importance, saying, “This acquisition represents a disciplined expansion of our North American digital asset footprint and a decisive step in executing Canaan’s broader energy strategy.”

Strategic power and operational synergy

The ABC Projects give Canaan access to cheap and reliable power, with electricity costs under 3 cents per kilowatt-hour at Bear and Chief, and added off-grid wind power at Alborz. Working with WindHQ, which owns 51% of the projects, Canaan taps into their experience with wind energy and running data centers. 

This partnership strengthens Canaan’s position in Texas’ power market, helping the company operate efficiently while supporting the grid. The sites can also adjust energy use and take advantage of price swings, fitting perfectly with Canaan’s plan to combine Bitcoin mining with smart power management.

Tyler Page, Cipher CEO, commented on the transition, saying, “Given that history, it was important for us to transition the assets to an industry leader capable of advancing the long-term vision we established. Our decision to retain a meaningful equity stake in Canaan reflects our confidence in the platform and growth prospects.”

Market performance and industry context

According to Google Finance data, Canaan shares ended the day at $0.43, down 5.7%, after opening weak and trading in a narrow $0.42–$0.44 range. However, after-hours trading showed a small rebound of 0.89%. 

Moreover, the firm’s moves are happening in a highly competitive Bitcoin mining market, where the U.S. accounts for 36% of the world’s total mining power.

Recently, Canaan announced that its revenue in Q3 2025 reached $150.5 million, a growth of 104.4% from last year, primarily driven by the sales of mining machines and the development of independent mining. Mining firm Hive Digital has also shown substantial growth, marking the continued evolution of the sector.

Singapore-based Bitdeer also recently sold all the Bitcoin it held, a very unusual occurrence in the sector, emphasizing the need for cash flow management. “Our decision to sell Bitcoin should not be a cause for concern in the market at large,” Bitdeer clarified, despite its continued mining activities and expansion plans.

Also Read: Engie Eyes Bitcoin Mining at Giant Solar Farm in Brazil