Canaan Acquires $39.75M West Texas Projects, Adds 4.4 EH/s and 120 MW Capacity
On February 23, Canaan bought Cipher Mining’s 49% stake in three West Texas projects for an all-stock consideration valued at $39.75 million, issuing over 800 million Class A shares. The deal brings 6,840 Avalon A15Pro rigs, 4.4 EH/s hashrate and 120 MW capacity in ERCOT with sub-3 ¢/kWh power costs.
1. Acquisition Details
On February 23, Canaan acquired Cipher Mining’s 49% equity interest in the ABC Projects, encompassing three operational West Texas mining sites. The all-stock transaction valued at $39.75 million involved issuing over 800 million Class A shares to Cipher, making the latter a significant new shareholder.
2. Mining Assets and Capacity
The acquisition includes 6,840 Avalon A15Pro mining rigs delivering roughly 4.4 EH/s of hashrate and securing 120 MW of power capacity. These assets transition a former Cipher site into Canaan’s expanded mining operations with ready-to-use infrastructure.
3. Power Economics and Strategic Implications
Located in the ERCOT market, the acquired sites benefit from long-term grid contracts and off-grid wind integration that yield power costs below 3 ¢/kWh. This deal underscores Canaan’s shift toward an asset-heavy energy model and strengthens its North American presence.