Canaan dropped $39.75 million Monday to buy a 49% stake in three Texas mining facilities. The bitcoin mining texas acquisition gives the hardware maker direct exposure to 120 megawatts of power and 4.4 exahashes per second of live hashrate.
The deal closed fast. Canaan acquired Cipher Mining’s interest in joint ventures Alborz LLC, Bear LLC and Chief Mountain LLC—collectively called the ABC Projects. Partner WindHQ, a renewable energy infrastructure firm, keeps the other 51%.
Canaan also picked up 6,840 Avalon A15Pro mining rigs from Cipher. Those machines came from Cipher’s Black Pearl site, which is converting to an AI and high-performance computing data center. Hardware maker turns infrastructure player.
**Why Bitcoin Mining Texas Operations Matter**
Texas offers what miners crave: cheap power. The ABC Projects sites run on electricity below $0.03 per kilowatt-hour. That’s among the lowest in North America. They plug into ERCOT, the state’s independent grid, and include wind generation plus demand-response capabilities.
“By increasing our exposure to high-quality, low-cost operational power assets in Texas, we are aligning our proprietary technology with critical infrastructure to drive long-term efficiency and scale,” said Nangeng Zhang, Canaan’s chairman and CEO.
Cheap power equals survival when Bitcoin prices stagnate and hashrate climbs. The bitcoin mining texas landscape favors operators who lock in sub-3-cent electricity. Canaan now controls assets that meet that threshold.
**How Canaan Funded the Deal**
No cash changed hands. Canaan issued 806,439,900 Class A shares—equal to 53,762,660 American Depositary Shares—priced at $0.7394 per ADS. Those shares face a six-month lockup. Cipher gets equity exposure. Canaan preserves cash.
The move follows a strong fourth quarter. Canaan reported Q4 2025 revenue of $196.3 million, up 121.1% year-over-year. Bitcoin mining revenue jumped 98.5% to $30.4 million. The company now holds 1,750 BTC in treasury.
Shipments hit records. Canaan delivered 14.6 EH/s of computing power and expanded installed hashrate to 9.91 EH/s. A large institutional US order drove the growth. The ABC Projects acquisition builds on that momentum.
**The Broader Mining Shift**
Canaan isn’t alone in chasing infrastructure. Bitcoin miners face margin pressure as difficulty climbs and block rewards shrink. The solution for many: pivot to AI and data center operations where power capacity commands higher premiums.
MARA Holdings grabbed a 64% stake in French infrastructure company Exaion last week. Hive, Hut 8, TeraWulf and Iren are converting mining facilities into data centers. CoreWeave already completed the transition to pure AI infrastructure. Power capacity matters more than ASICs when AI compute pays 3-5x mining margins.
The bitcoin mining texas trend now intersects with AI demand. Texas offers grid flexibility and energy abundance that AI data centers require. Facilities like the ABC Projects can theoretically switch between Bitcoin mining and AI compute based on which generates better returns.
Can hardware makers become infrastructure operators? Canaan thinks yes. The company framed the acquisition as part of an effort to stabilize power grids amid surging data center demand. Translation: position assets to serve whichever market pays best.
**What This Means for Mining Competition**
Vertical integration accelerates. Hardware makers like Canaan historically sold rigs to third-party miners. Now they compete with their own customers by operating facilities. That creates tension but also hedges against hardware sales volatility.
The 49% stake structure is notable. WindHQ retains majority control at 51%. That limits Canaan’s operational authority but reduces capital requirements. It’s a joint venture model that spreads risk while preserving optionality.
“ABC Projects feature industry-leading power pricing and offer a strong foundation for growth,” Zhang added. Growth likely means expanding the 120 MW footprint or adding more sites under similar partnerships.
Mining difficulty rebounded 15% recently as US miners recovered from winter outages. That pressures profitability for operators without sub-3-cent power. Canaan’s ABC assets hit that mark, positioning them to weather tighter margins better than peers stuck with 5-7 cent electricity.
**The Texas Advantage Continues**
Texas dominates US Bitcoin mining for clear reasons. ERCOT’s deregulated market allows direct power purchasing agreements. Renewable energy credits and curtailment programs let miners earn revenue even when rigs shut down. Wind and solar buildouts create excess capacity that miners absorb at discounted rates.
The ABC Projects tap into these advantages through wind-powered generation and demand-response setups. When grid demand spikes, miners curtail operations and sell power back at premium rates. That flexibility turns mining facilities into grid stabilization tools, not just hashrate generators.
Canaan’s move into bitcoin mining texas operations positions the company to benefit whether Bitcoin prices rally or AI compute demand explodes. The infrastructure works for both. Power capacity is the scarce asset. Canaan just locked in 120 MW of it at industry-low prices.
Question is whether other hardware makers follow the same playbook. Bitmain and MicroBT still focus on equipment sales. Canaan now competes on both hardware and infrastructure. That dual exposure hedges business model risk but requires operational expertise hardware companies don’t traditionally have.
Next test: can Canaan operate mining facilities as efficiently as it manufactures mining rigs? The ABC Projects will answer that over the next 12-18 months.
