| What to Know: - Canaan bought Cipher’s 49% stakes in three Texas bitcoin mining JVs. - Deal grants ERCOT exposure and low-cost power advantages for operations. - Acquired sites total 120 MW, 4.4 EH/s, competitive efficiency. |
Canaan acquired Cipher Mining’s 49% equity interest in three operational bitcoin mining joint ventures in West Texas: Alborz, Bear, and Chief Mountain (the ABC Projects). The transaction brings Canaan direct exposure to Texas power infrastructure within the Electric Reliability Council of Texas (ERCOT) market.
The consideration totaled $39.75 million, paid entirely in newly issued Canaan equity. As reported by The Block, the structure comprised 806,439,900 Class A shares, equivalent to about 53.76 million ADS, subject to a six‑month lockup.
The acquired assets are described as fully operational with approximately 120 MW of power capacity and about 4.4 EH/s of deployed hashrate. According to The Energy Mag, the fleet efficiency is roughly 25.7 J/TH and benefits from sub‑$0.03/kWh electricity within ERCOT’s market framework, supporting competitive operating margins.
The deal advances Canaan’s vertical‑integration thesis by pairing proprietary ASIC manufacturing with low‑cost, flexible power resources in Texas. Integrating hardware and energy infrastructure can improve cost control, enable demand‑response participation, and diversify revenue during high‑price grid events, while expanding Canaan’s North American footprint.
Company leadership and counterparties framed the transaction as an energy‑infrastructure alignment that supports long‑term efficiency. “A disciplined expansion of our North American digital asset footprint” and “a decisive step in executing Canaan’s broader energy strategy,” said Nangeng Zhang, Chairman and CEO of Canaan. “We’re proud of the role we played in developing the ABC Projects … and believe Canaan is the right steward for the next phase of growth,” said Tyler Page, CEO of Cipher Mining.
Financing via equity issuance rather than cash underscores balance‑sheet flexibility but introduces dilution considerations for existing shareholders. As reported by Cointelegraph, Canaan’s shares fell about 5.7% following the announcement, highlighting market sensitivity to share issuance and governance dynamics as Cipher becomes a shareholder. The six‑month lockup may temper near‑term float expansion while both parties integrate oversight and operational plans for the ABC Projects.
From an operations‑and‑power perspective, coupling efficient machines with sub‑$0.03/kWh power and ERCOT’s flexible market design can support competitive breakevens and optionality around curtailment credits. At the time of this writing, Bitcoin (BTC) is about $63,382 amid very high measured volatility, factors that can influence mining margins alongside site‑level efficiency and load‑management performance.
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