Canaan takes 49% of ABC Projects in West Texas; WindHQ retains 51%
Canaan Inc. has agreed to acquire Cipher Mining Technologies’ 49% interest in a West Texas bitcoin mining joint venture. The stock-funded transaction is valued at approximately US$39.75 million and will give Canaan full control of the project.
As part of the deal, Cipher will receive Canaan shares, making it a significant shareholder in the Singapore-based firm. The agreement strengthens Canaan’s presence in the U.S. market while allowing Cipher to maintain exposure to the venture through equity ownership.
What Canaan is buying and who owns what
Canaan is acquiring Cipher’s 49% equity interest in the “ABC Projects,” which comprise Alborz LLC, Bear LLC, and Chief Mountain LLC, according to the company’s announcement. After the deal, Canaan holds 49% and WindHQ LLC holds 51% of the joint venture.
Deal terms and share issuance
The consideration is ~US$39.75 million, funded through the issuance of 806,439,900 Canaan Class A ordinary shares (equivalent to 53,762,660 ADS) priced at US$0.7394 per ADS, and subject to a six-month lock-up.
Canaan buys Cipher 49 percent stake in West Texas bitcoin mining venture: operating metrics
Canaan said the ABC Projects currently operate 120 MW of power capacity and support ~4.4 EH/s of operating hashrate, with fleet efficiency at ~25.7 J/TH and potential for upgrades.
Canaan buys Cipher 49 percent stake in West Texas bitcoin mining venture and adds 6,840 rigs
As part of the transaction, Canaan also purchased 6,840 Avalon A15Pro-AVG-221T mining rigs from Cipher. The company said the rigs were originally purchased from Canaan in July 2025 and were energized at Cipher’s Black Pearl site, which Cipher is converting into an AI-HPC data center.
Context & Analysis
Canaan’s release frames the purchase as an expansion of its “North American digital asset footprint” and part of a broader energy strategy tied to operational power assets in Texas and ERCOT participation (including demand response and energy arbitrage). The deal also deepens the commercial relationship between Canaan (a mining hardware maker and infrastructure operator) and Cipher (a U.S. miner/data center operator), with Cipher receiving equity in Canaan rather than cash.
Final Thoughts
If completed as announced, the transaction positions Canaan as a 49% owner of three operating West Texas mining entities while turning Cipher into a major shareholder through a non-cash consideration structure, alongside the transfer of 6,840 mining rigs previously deployed at Black Pearl.
FAQs
Q : What did Canaan acquire from Cipher?
A : Canaan Inc. acquired Cipher Mining Technologies’ 49% equity interest in the ABC Projects (Alborz, Bear, and Chief Mountain). The deal also includes the purchase of 6,840 Avalon A15Pro bitcoin mining rigs.
Q : How much is the deal worth and how is it being paid?
A : The transaction is valued at about US$39.75 million and is fully stock-funded. Payment will be made through 806,439,900 Class A shares, equivalent to roughly 53,762,660 ADS, subject to a six-month lock-up period.
Q : Who owns the joint venture after the transaction?
A : After completion, Canaan will hold a 49% stake, while WindHQ LLC will retain the remaining 51% ownership.
Q : How large are the West Texas mining operations?
A : The West Texas sites have a combined capacity of 120 MW and support approximately 4.4 EH/s of operating hashrate, with reported energy efficiency of about 25.7 J/TH.
Q : Why does this make Cipher a major shareholder?
A : Cipher receives newly issued Canaan shares as consideration, resulting in a significant equity position in Canaan, although the shares are subject to a lock-up.
Q : What happens to Cipher’s Black Pearl facility mentioned in the deal?
A : Canaan stated the acquired mining rigs were energized at Black Pearl, a facility that Cipher is now converting into an AI-HPC data center.
Q : Is “Canaan buys Cipher 49 percent stake in West Texas bitcoin mining venture” cash or stock?
A : The acquisition is stock-funded, not cash-based, as confirmed by the share issuance terms disclosed in the announcement.
Facts
Event
Canaan acquires Cipher’s 49% interest in the ABC Projects (West Texas bitcoin mining JV) and purchases 6,840 Avalon A15Pro rigsDate/Time
2026-02-23T16:10:00-05:00 (release timestamp); 2026-02-24T02:10:00+05:00 (Asia/Karachi equivalent)Entities
Canaan Inc. (NASDAQ: CAN); Cipher Mining Technologies Inc. (NASDAQ: CIFR); WindHQ LLC; Alborz LLC; Bear LLC; Chief Mountain LLC; ERCOTFigures
~US$39.75m; 806,439,900 shares; 53,762,660 ADS; US$0.7394/ADS; 6-month lock-up; 120 MW; ~4.4 EH/s; ~25.7 J/TH; 6,840 rigsQuote
“This acquisition represents a disciplined expansion of our North American digital asset footprint…” Nangeng Zhang, Chairman and CEO, CanaanSources
PR Newswire release; FT Markets announcement; TradingView (Cointelegraph syndication); Canaan investor release (A15Pro supply)