In a major strategic move, Nasdaq-listed Bitcoin mining hardware manufacturer Canaan Creative has acquired a 49% stake in a significant Texas-based Bitcoin mining joint venture from Cipher Mining. The transaction, valued at $39.75 million, was financed through the issuance of 53,762,660 American Depositary Shares (ADS).
The acquired stake is in the joint venture known as the "ABC Projects," comprising three legal entities: Alborz LLC, Bear LLC, and Chief Mountain LLC. Following the deal, Canaan holds a 49% interest, while the remaining 51% controlling stake is retained by the venture's partner, renewable energy infrastructure company WindHQ.
The operational assets are substantial. The three facilities have a combined power capacity of 120 megawatts (MW) and contribute approximately 4.4 exahashes per second (EH/s) to the Bitcoin network, equating to roughly 0.6% of the global hashrate as of early 2025. In a separate but related transaction, Canaan also purchased 6,840 Avalon A15Pro mining rigs from Cipher Mining, which were previously deployed at Cipher's Black Pearl site.
Canaan's Chairman and CEO, Nangeng Zhang, stated the move aligns the company's technology with "high-quality, low-cost operational power assets in Texas." The Texas sites benefit from electricity costs below $0.03 per kilowatt-hour and feature wind-powered generation within the ERCOT power market.
Analysts view this as a pivotal shift for Canaan, marking a strategic pivot from pure hardware manufacturing to integrated, asset-backed operations. This provides revenue diversification, direct exposure to Bitcoin rewards, and a hedge against hardware market volatility. The deal reflects a broader industry trend of vertical integration, where hardware manufacturers seek to own and operate mining infrastructure to capture more value.
For Cipher Mining, the sale represents a capital recycling strategy. The proceeds will be used to accelerate development at newer, owned sites, including the conversion of its Black Pearl location into an artificial intelligence and high-performance computing (AI-HPC) data center—a move echoing a wider industry trend as miners explore AI to offset profitability pressures.
