Canaan Expands U.S. Bitcoin Mining With West Texas Deal, Targets Gigawatt-Scale Growth

Canaan deepens U.S. power exposure while shifting toward AI-HPC integration and large-scale energy development.

Canaan Inc. is expanding its U.S. mining presence with a new acquisition in West Texas. The company has purchased Cipher Mining’s 49% stake in a joint venture that operates three Bitcoin mining sites. In light of this development, the firm is set to deepen its presence in North American power assets as competition in mining intensifies. Management also signaled a broader shift toward energy-linked infrastructure and AI-focused facilities.

ABC Projects Partnership Boosts U.S. Mining Infrastructure

The agreement gives Canaan a 49% interest in the ABC Projects, which include Alborz LLC, Bear LLC, and Chief Mountain LLC. WindHQ retains the remaining 51% stake and continues as operating partner. As disclosed, the combined sites provide 120 megawatts of power capacity and about 4.4 exahashes per second of operating hashrate.

Key details of the transaction include:

• A 49% stake acquired from Cipher Mining.
• 120 MW total power capacity across three sites.
• Around 4.4 EH/s of active hashrate.
• WindHQ maintaining a 51% controlling interest.

Nangeng Zhang, chairman and chief executive officer, described deal as a disciplined expansion of Canaan’s North American digital asset footprint. He said increased exposure to low-cost Texas power aligns proprietary hardware with long-term infrastructure strategy. Zhang also welcomed Cipher as a significant shareholder, citing shared governance standards.

Canaan Posts Strong Q4 Revenue but Shares Slide Amid Expansion Plans

Consideration for the deal totaled about $39.75 million. In return, Canaan issued 806,439,900 Class A ordinary shares to Cipher, equal to 53,762,660 American Depositary Shares priced at $0.7394 per ADS. Additionally, the shares are subject to a six-month lock-up period.

In addition, Canaan purchased 6,840 mining rigs from Cipher. Machines were originally sold to Cipher in July 2025 and operated at Black Pearl site. Facility is now being converted into an AI and high-performance computing data center.

• Shift from an asset-light power model to direct U.S. energy development.
• Combine Bitcoin mining with AI and high-performance computing sites.
• Build a project pipeline for large power demand by end of year.
• Aim for possible expansion to gigawatt-scale capacity.

Recent financial results support expansion plans. Fourth-quarter revenue reached $196 million, up 121% year over year. Figure marks strongest quarterly sales in three years, driven largely by mining machine demand.

Despite the revenue rebound, market reaction remained cautious. Nasdaq-listed shares fell 5.71% on Monday, according to Yahoo Finance. The stock is down 44% year-to-date, reflecting broader pressure across Bitcoin mining equities.

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