Canaan expands U.S. mining operations with purchase of Cipher’s Texas JV stake
Canaan acquired Cipher's 49% stake in a West Texas mining joint venture for $39.75 million in stock.Summary
Canaan Inc. purchased a 49% equity interest in a joint venture involving West Texas mining projects (ABC Projects: Alborz LLC, Bear LLC, and Chief Mountain LLC) from Cipher Mining for $39.75 million, paid entirely in Canaan stock.
This transaction, which makes Cipher a major shareholder in the Singapore-based Canaan, was funded by issuing 806.4 million Class A ordinary shares (equivalent to 53.8 million American depositary shares), which are subject to a six-month lock-up period. The joint venture sites collectively utilize 120 megawatts of power and support about 4.4 exahashes per second of hashrate.
Additionally, Canaan bought 6,840 Avalon A15Pro mining rigs from Cipher that were previously at Cipher's Black Pearl facility, which is being repurposed as an AI and high-performance computing data center. Following the announcement, Canaan shares dropped 6% while Cipher shares increased by 4%.
(Source：CoinDesk)