Canaan, a leading manufacturer of Bitcoin mining hardware, has officially signaled a major shift toward infrastructure ownership. The company recently announced the acquisition of a 49% stake in three operational Texas mining facilities—collectively known as the “ABC Projects”—from Cipher Mining for approximately $39.75 million.
This move isn’t just about owning more “boxes”; it’s a strategic play to integrate Canaan’s proprietary Avalon hardware with high-quality, low-cost power assets. By securing a foothold in these sites, which boast a combined 120 megawatts (MW) of power capacity and 4.4 exahashes per second (EH/s) of hashrate, Canaan is positioning itself as both a hardware provider and a major player in the North American mining landscape.
Why the Texas “ABC Projects” Matter for Canaan’s Strategy
The acquisition covers three joint venture entities: Alborz LLC, Bear LLC, and Chief Mountain LLC. While Canaan now holds 49%, the remaining 51% is retained by WindHQ, a renewable energy infrastructure firm. This partnership is particularly savvy given the current energy climate. The Texas sites benefit from ultra-competitive electricity costs—below $0.03 per kilowatt-hour—and utilize wind-powered generation.
Beyond just cheap power, these facilities are integrated into the ERCOT power market, allowing for grid demand-response capabilities. This means the sites can stabilize the local power grid during peak demand, a feature that Nangeng Zhang, Chairman and CEO of Canaan, noted is essential as data center demand continues to skyrocket across the state. As part of the deal, Canaan also picked up 6,840 Avalon A15Pro mining rigs, which were relocated from a site being converted for AI use.
The Great Pivot: From Bitcoin Mining to AI Infrastructure
Canaan’s expansion comes at a time when the mining industry is undergoing a massive identity shift. As Bitcoin mining margins tighten, many companies are looking toward Artificial Intelligence (AI) and High-Performance Computing (HPC) to diversify their revenue. For example, the machines Canaan acquired were previously stationed at Cipher’s Black Pearl location, which is currently being transformed into an AI-HPC data center.
This trend is visible across the board. Companies like MARA Holdings, Hive, and TeraWulf are all repurposing their massive power capacities to support the AI boom. Canaan’s latest financial reports suggest they have the momentum to compete in this changing environment; the company reported a 121.1% year-on-year revenue increase in the fourth quarter of 2025, reaching $196.3 million. By securing these Texas assets through a share-based deal—issuing over 800 million Class A shares—Canaan is doubling down on its “hardware-plus-infrastructure” model to ensure long-term scalability.
