Canaan Inc. ( CAN ), a maker of bitcoin mining hardware and a crypto mining infrastructure operator, said it bought a 49% equity stake in a joint venture linked to several mining projects in West Texas from Cipher Mining ( CIFR ) for $39.75 million in stock.
The transaction covers Cipher’s stake in ABC Projects, which includes Alborz LLC, Bear LLC and Chief Mountain LLC. The rest of the company is owned by WindHQ, according to a Monday statement.
The acquisition was financed through the issuance of 806.4 million Class A shares, equivalent to 53.8 million American Depositary Shares, and makes Cipher, a US-based bitcoin mining company that develops and operates large data centers, a major shareholder in Singapore-based Canaan. The shares are subject to a six-month lock-up.
Canaan shares fell 6% on Monday, while Cipher shares rose 4%. Cipher is scheduled to report fourth-quarter earnings before the market opens on February 24.
Together, the locations operate 120 megawatts of power capacity and support approx. 4.4 exahashes per second (EH/s) hash rate. The efficiency of the fleet is about 25.7 joules per terahash (J/TH).
As part of the deal, Canaan also purchased 6,840 Avalon A15Pro mining rigs previously installed at Cipher’s Black Pearl facility, which is being converted into an AI and high-performance data center.
