Canaan Inc. Acquires Cipher Mining's Interest in Multiple Operational Mining Projects Totaling ~4.4 EH/s in West Texas

Rhea-AI Summary

Canaan (NASDAQ: CAN) acquired Cipher Mining's 49% equity interest in Alborz, Bear and Chief Mountain LLC (the ABC Projects), securing a 49% stake in ~120 MW of West Texas power capacity supporting ~4.4 EH/s of operating hashrate. The deal includes 6,840 Avalon A15Pro rigs and was funded via issuance of 806,439,900 Class A shares (53,762,660 ADS) to Cipher, valued at approximately US$39.75 million. The sites report ~25.7 J/TH fleet efficiency and sub-3 cents/kWh power rates; Cipher becomes a significant shareholder under a six-month lock-up. The transaction aligns with Canaan's U.S. energy strategy and ERCOT operations focus.

Positive

• Acquired 49% stake in ABC Projects supporting ~4.4 EH/s
• Access to 120 MW of operational West Texas power
• Low-cost power at sub-3 cents/kWh across sites

Negative

• Issued 806,439,900 Class A shares, causing material dilution
• Transaction valued at ~US$39.75 million paid via equity

News Market Reaction – CAN

-5.71%

35 alerts

-5.71% News Effect

+14.7% Peak in 30 hr 21 min

-$20M Valuation Impact

$331M Market Cap

0.8x Rel. Volume

On the day this news was published, CAN declined 5.71%, reflecting a notable negative market reaction. Argus tracked a peak move of +14.7% during that session. Our momentum scanner triggered 35 alerts that day, indicating elevated trading interest and price volatility. This price movement removed approximately $20M from the company's valuation, bringing the market cap to $331M at that time.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Operational power capacity: 120 MW Operating hashrate: ~4.4 EH/s Fleet efficiency: ~25.7 J/TH +5 more

8 metrics

Operational power capacity 120 MW Total power at ABC Projects in West Texas

Operating hashrate ~4.4 EH/s Total operating hashrate across ABC Projects

Fleet efficiency ~25.7 J/TH Current fleet efficiency at ABC Projects

Additional mining rigs 6,840 units Canaan Avalon A15Pro-AVG-221T rigs acquired from Cipher

Transaction consideration US$39.75 million Total consideration for acquiring Cipher’s 49% JV interest and rigs

Shares issued 806,439,900 Class A shares Equity issued to Cipher as non-cash consideration

ADS issued 53,762,660 ADS Equivalent ADS issued to Cipher

Pricing per ADS US$0.7394 per ADS Implied price used in share-based transaction with Cipher

Market Reality Check

Price: $0.4977 Vol: Volume 11,329,230 vs 20-d...

low vol

$0.4977 Last Close

Volume Volume 11,329,230 vs 20-day average 18,057,552 (relative activity 0.63x). low

Technical Price 0.455 trades below 200-day MA 0.85 and is close to 52-week low 0.4386 (vs 52-week high 2.22).

Peers on Argus

Several hardware peers tracked by the momentum scanner are down (e.g., NNDM, CRS...

3 Down

Several hardware peers tracked by the momentum scanner are down (e.g., NNDM, CRSR, SSYS each around -1%), broadly aligning with CAN’s -1.37% move and suggesting sector pressure alongside this company-specific acquisition.

Historical Context

5 past events · Latest: Feb 10 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Feb 10	Mining update	Positive	-6.9%	January 2026 mining metrics with record BTC and ETH treasury.
Feb 10	Earnings results	Positive	-6.9%	Q4 and 2025 results with strong revenue growth but continued net loss.
Feb 03	Earnings date	Neutral	-3.3%	Announcement of timing and details for Q4 and FY 2025 results call.
Jan 16	Nasdaq notice	Negative	-3.8%	Noncompliance notice for ADSs trading below $1.00 and cure timeline.
Jan 14	Mining update	Positive	+1.8%	December 2025 bitcoin production and hashrate growth update.

Pattern Detected

Recent positive crypto and financial updates often coincided with negative price reactions, while regulatory/operational updates have had mixed impact.

Recent Company History

Over the past months, Canaan reported strong mining growth and revenue recovery but persistent losses. December and January updates showed record treasuries of up to 1,778 BTC and operating hashrate above 6.63 EH/s, yet shares fell 6.87% after the February 10 disclosures. A Nasdaq minimum bid notice on Jan 16 saw a further -3.82% reaction. Against this backdrop, today’s equity-financed acquisition of ~4.4 EH/s and 120 MW in Texas extends the shift toward owned power and infrastructure.

Market Pulse Summary

The stock moved -5.7% in the session following this news. A negative reaction despite the strategic ...

Analysis

The stock moved -5.7% in the session following this news. A negative reaction despite the strategic expansion would fit prior patterns where positive crypto and earnings updates on Feb 10 coincided with a -6.87% move. The market may focus on dilution from issuing about 806,439,900 Class A shares and the company’s sub-$1 price near its 0.4386 52-week low, rather than the added ~4.4 EH/s and 120 MW. Execution on ERCOT power economics and integration with AI-HPC plans could be critical to reassessing this reaction over time.

Key Terms

ads, ercot, demand response, energy arbitrage, +3 more

7 terms

ads financial

"equivalent to 53,762,660 American Depositary Shares ("ADS"), priced at US$0.7394"

Ads are paid promotional messages a company places across media — online, on TV, in print, or on social platforms — to attract customers, explain products, or shape public perception. For investors, ads matter because they drive sales growth, affect how much a company must spend to win customers, and influence brand strength and long-term value. Ads can also create regulatory or reputational risk if claims are misleading, which can affect profits and stock price.

ercot technical

"within the Electrical Reliability Council of Texas ("ERCOT") market, ensuring efficient"

The Electric Reliability Council of Texas (ERCOT) is the organization that operates and balances the bulk electric grid for most of Texas, acting like an air-traffic controller that matches electricity supply and demand across the state and runs the wholesale power market. Investors care because ERCOT’s decisions, grid reliability, and market prices directly affect the revenues, costs, and risk exposure of utilities, energy producers, large consumers, and companies whose operations depend on stable, affordable power.

demand response technical

"The ABC Projects are proficient in demand response and energy arbitrage within"

Demand response is a program or market mechanism where electricity users are paid or incentivized to reduce or shift their power use when the grid is stressed or prices are high, similar to turning down nonessential appliances during a heat wave to ease a traffic jam. It matters to investors because it can lower peak energy costs, affect utility revenues and market prices, and create opportunities for companies that provide the software, equipment, or services that enable those load changes.

energy arbitrage technical

"The ABC Projects are proficient in demand response and energy arbitrage within"

Energy arbitrage is the practice of buying electricity or fuel when prices are low and selling or using it when prices are higher, often by storing energy in batteries or scheduling flexible demand. Like buying groceries on sale to use later, it turns price swings into profit or savings. Investors care because it creates a predictable revenue stream and affects the value and returns of storage, generation and grid-related businesses by capturing price differences across time or places.

ai-hpc technical

"which is being converted into an AI-HPC data center."

AI-HPC combines artificial intelligence tools with high-performance computing systems to run very large, fast calculations such as training large machine-learning models or analyzing massive datasets. Investors care because it drives demand for specialized chips, servers and software and can give companies a speed and scale advantage—think of upgrading from a kitchen stove to an industrial oven so tasks finish far faster and at greater scale, affecting costs, revenue potential and capital spending.

colocation technical

"integrates bitcoin mining with AI-HPC colocation to enhance return on invested"

Colocation is the practice of placing a trader’s computer servers inside or next to an exchange’s data center so their orders travel the shortest possible distance to the exchange’s computers. For investors this matters because even tiny gains in speed can mean better trade prices or reduced slippage—like being first in line at a checkout—so firms that colocate can gain steady, measurable advantages or incur extra costs that affect returns.

eh/s technical

"mining projects totaling ~4.4 EH/s in West Texas"

"Eh/s" stands for "earnings per share," a measure of a company's profitability calculated by dividing its net profit by the number of shares outstanding. It indicates how much money each share would earn if the company’s profits were divided equally among shareholders, helping investors assess how well a company is performing financially. A higher "eh/s" suggests greater profitability, which can influence investment decisions.

AI-generated analysis. Not financial advice.

Acquires 49% equity interest in Alborz LLC, Bear LLC, and Chief Mountain LLC 
Adds Cipher Mining as significant shareholder through non-cash transaction
Includes acquisition of 6,840 Avalon® A15Pro mining rigs

SINGAPORE, Feb. 23, 2026 /PRNewswire/ -- Canaan Inc. (NASDAQ: CAN) ("Canaan" or the "Company"), an innovator in crypto mining, today announced that it has acquired Cipher Mining Technologies Inc.'s (NASDAQ: CIFR) ("Cipher") 49% equity interest in the joint venture comprising Alborz LLC, Bear LLC, and Chief Mountain LLC (collectively, the "ABC Projects"). Following the acquisition, the Company now owns a 49% stake in the ABC Projects, while WindHQ LLC ("WindHQ") maintains its 51% stake in the ABC Projects. The sites currently operate a total of 120 MW of power capacity and support ~4.4 EH/s of total operating hashrate. Fleet efficiency currently stands at ~25.7 J/TH with the potential for hardware and infrastructure upgrades. As part of the transaction, the Company also purchased an additional 6,840 Canaan Avalon A15Pro-AVG-221T mining rigs from Cipher. The mining rigs were originally purchased from Canaan in July 2025 and energized at Cipher's Black Pearl site, which is being converted into an AI-HPC data center.  

The total consideration for the transaction is approximately US$39.75 million. To preserve the Company's financial flexibility, the transaction was funded through the issuance of 806,439,900 Canaan Inc. Class A ordinary shares to Cipher, equivalent to 53,762,660 American Depositary Shares ("ADS"), priced at US$0.7394 per ADS and subject to a lock-up period of six months.

Strategic Highlights:

• Large-Scale, Low-Cost & Fully Operational Power Assets: The acquisition provides Canaan with a 49% stake in the joint venture and direct access to a total of 120 MW of fully operational power assets in West Texas with highly competitive average rates of sub-3 cents/kWh, leveraging the most competitive long-term power rates on the Texas grid for Bear and Chief, and off-grid wind power integration at Alboz.
• Operational Synergy: By partnering with WindHQ, an existing customer of Canaan with significant experience in wind energy, power infrastructure and data center businesses, the Company integrates directly into a sophisticated, localized operational power framework. This alliance bolsters Canaan's proven expertise within the Electrical Reliability Council of Texas ("ERCOT") market, ensuring efficient and reliable execution.
• Grid Stabilization & Flexibility: The ABC Projects are proficient in demand response and energy arbitrage within the ERCOT grid, aligning with Canaan's initiative to stabilize power grids amid rising data center demand.

"This acquisition represents a disciplined expansion of our North American digital asset footprint and a decisive step in executing Canaan's broader energy strategy. 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, chairman and chief executive officer of Canaan. "We are also honored to welcome Cipher as a significant shareholder. This deepened relationship not only reflects our shared commitment to robust corporate governance but also allows us to support Cipher's impressive evolution into a key player in the AI and HPC sectors."

"We are proud of the role we played in developing the ABC Projects and bringing them to their current operational stage. Given that history, it was important for us to transition the assets to an industry leader capable of advancing the long-term vision we established for these sites. We believe Canaan's vertical integration, technology leadership, and expanding energy platform make them the right steward for the next phase of growth," said Tyler Page, CEO of Cipher. "We were willing to take a meaningful equity position because we see significant opportunity ahead for Canaan. Having worked alongside the Canaan team for years, we have strong conviction in their ability to execute, scale the platform, and drive sustained growth and improved valuation over time."

Zhang continued, "ABC Projects feature industry-leading power pricing and offer a strong foundation for growth. In this pivotal year, we believe that Canaan is well positioned to capitalize on our strengths in technology and our expanding energy initiatives."

The Company's recently announced energy strategy marks a transition from an opportunistic, asset-light power approach to a systematic upstream development model centered on direct U.S. power applications, with the goal of building a robust project pipeline capable of securing substantial load by the end of 2026, potentially at gigawatt scale. This strategy integrates bitcoin mining with AI-HPC colocation to enhance return on invested capital, deliver flexible, dispatchable grid load, and deepen long-term relationships with power partners. Throughout 2026, the Company will prioritize disciplined execution by advancing a portfolio of high-quality, financeable infrastructure projects, emphasizing partnership-driven expansion and project-level financing structures, positioning the platform for scalable and capital-efficient growth.

About Canaan Inc.

Established in 2013, Canaan Inc. (NASDAQ: CAN), is a technology company focusing on ASIC high-performance computing chip design, chip research and development, computing equipment production, and software services. Canaan has extensive experience in chip design and streamlined production in the ASIC field. In 2013, Canaan's founding team shipped to its customers the world's first batch of mining machines incorporating ASIC technology under the brand name Avalon and, today, the Company's machines have the second largest share of the global bitcoin mining market. In 2019, Canaan completed its initial public offering on the Nasdaq Global Market. To learn more about Canaan, please visit https://www.canaan.io/.

Safe Harbor Statement

This press release contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the business outlook and quotations from management in this announcement, as well as Canaan Inc.'s strategic and operational plans, contain forward-looking statements. Canaan Inc. may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission ("SEC") on Forms 20-F and 6-K, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Canaan Inc.'s beliefs and expectations, such as expectations with regard to revenue or mining hash rate deployment, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the Company's goals and strategies; the Company's future business development, the ability of the Company to execute against its goals, financial condition and results of operations; the expected growth of the bitcoin industry and the price of bitcoin; the Company's expectations regarding demand for and market acceptance of its products, especially its bitcoin mining machines; the Company's expectations regarding maintaining and strengthening its relationships with production partners and customers; the Company's investment plans and strategies, fluctuations in the Company's quarterly operating results; competition in its industry; changing macroeconomic and geopolitical conditions, including evolving international trade policies and the implementation of increased tariffs, import restrictions, and retaliatory trade actions; and relevant government policies and regulations relating to the Company and cryptocurrency. Further information regarding these and other risks is included in the Company's filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and Canaan Inc. does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

Investor Relations Contact

Canaan Inc.
Xi Zhang
IR@canaan-creative.com

Christensen Advisory
Christian Arnell
canaan@christensencomms.com

Public Relations Contact

BlocksBridge Consulting
Jesse Colzani
canaan@blocksbridge.com

View original content:https://www.prnewswire.com/news-releases/canaan-inc-acquires-cipher-minings-interest-in-multiple-operational-mining-projects-totaling-4-4-ehs-in-west-texas-302694773.html

SOURCE Canaan Inc.

FAQ

What did Canaan (CAN) acquire from Cipher Mining on February 23, 2026?

Canaan acquired Cipher's 49% equity interest in Alborz, Bear and Chief Mountain projects. According to the company, the deal also includes 6,840 Avalon A15Pro mining rigs and rights to assets supporting ~4.4 EH/s and 120 MW of power capacity.

How did Canaan (CAN) fund the acquisition of Cipher's interest in the ABC Projects?

Canaan funded the transaction primarily by issuing shares to Cipher rather than cash. According to the company, it issued 806,439,900 Class A ordinary shares (53,762,660 ADS) valued at roughly US$39.75 million, subject to a six-month lock-up.

What power capacity and costs are associated with the ABC Projects acquired by Canaan (CAN)?

The ABC Projects operate 120 MW of power capacity with highly competitive rates. According to the company, sites feature sub-3 cents/kWh pricing and include long-term Texas grid rates plus off-grid wind integration at Alborz.

What mining hardware did Canaan (CAN) receive in the transaction with Cipher Mining?

Canaan acquired 6,840 Avalon A15Pro-AVG-221T mining rigs as part of the deal. According to the company, these rigs were originally purchased in July 2025 and energized at Cipher's Black Pearl site, now being converted to AI-HPC.

How might the acquisition affect Canaan's strategy in the U.S. and ERCOT market?

The deal advances Canaan's upstream U.S. energy strategy and ERCOT presence. According to the company, it supports building a financeable project pipeline, integrating bitcoin mining with AI-HPC colocation and grid-flexible load capabilities in 2026.