CRYPTO NEWSWIRE: Canaan Buys Major Stake in Cipher Bitcoin Mining Venture

 

BITCOIN MINING: Canaan Inc. acquired a 49% stake in a West Texas bitcoin mining venture from Cipher Mining for $39.75 million in stock. Cipher becomes a major shareholder in Canaan.

https://x.com/GetTheDailyDirt/status/2026556752230056010 ALL STOCK TRANSACTION: Canaan Inc., a prominent manufacturer of bitcoin mining hardware, has significantly expanded its operational footprint in West Texas by acquiring a 49% equity interest in a joint venture from Cipher Mining. The $39.75 million transaction, paid entirely in stock, sees Cipher become a major shareholder in Singapore-based Canaan, signaling a notable shift in the competitive cryptocurrency mining landscape.

The deal encompasses Cipher’s stake in the ABC Projects, which include Alborz LLC, Bear LLC, and Chief Mountain LLC, with the remaining venture interest held by WindHQ. This strategic move bolsters Canaan’s control over substantial mining infrastructure, adding 120 megawatts of energized power capacity and approximately 4.4 exahashes per second (EH/s) of hashrate to its portfolio. The purchase was funded through the issuance of 806.4 million Class A ordinary shares, equivalent to 53.8 million American depository shares, subject to a six-month lock-up.

Crucially, the agreement also highlights a strategic pivot for Cipher Mining, a U.S.-based operator. As part of the deal, Canaan purchased 6,840 Avalon A15Pro mining rigs previously deployed at Cipher’s Black Pearl facility, which is now being converted into an AI and high-performance computing data center. This suggests a diversification strategy for Cipher, potentially moving beyond pure crypto mining into more advanced computing services. The market reacted to these developments with Canaan shares falling 6%, while Cipher shares rose 4% following the announcement. As mentioned above, Canaan Inc. (NASDAQ: CAN) acquired a 49% stake in three West Texas Bitcoin mining projects (Alborz, Bear, and Chief Mountain) from Cipher Mining (NASDAQ: CIFR) for $39.75 million in stock, boosting its mining capacity by 4.4 EH/s. And as part of the deal, Cipher received a significant equity stake in Canaan and became a major shareholder.

Key Details of the Transaction....

• Assets Acquired: 49% stake in "ABC Projects" (Alborz, Bear, and Chief Mountain LLCs), with the remaining 51% held by WindHQ.
• Infrastructure: The projects feature 120 MW of power capacity,, with electrical costs below $0.03/kWh.
• Transaction Value: $39.75 million in Canaan Class A ordinary shares (approximately 53.8 million ADSs).
• Additional Assets:

  Canaan

  also purchased 6,840 Avalon A15Pro mining rigs from Cipher, which were previously located at the Black Pearl site.
• Strategic Move: The acquisition allows

  Cipher

  to pivot the Black Pearl site toward Artificial Intelligence (AI) and High-Performance Computing (HPC), while

  Canaan

  expands its operational mining footprint.
• Lock-up: The shares issued to Cipher are subject to a six-month lock-up period.

The deal, announced around February 23–24, 2026, strengthens

Canaan's

position in North America as both a hardware provider and an operator.