Canaan Inc., a Singapore-based Bitcoin mining hardware manufacturer, has acquired a 49% stake in a West Texas Bitcoin mining joint venture from Cipher Mining for $39.75 million in stock. The transaction extends Canaan's operational footprint in Texas, a leading North American Bitcoin mining hub. Cipher shares rose 6.41% while Canaan climbed 7.95% following the announcement.

The deal includes Cipher's interests in ABC Projects, Alborz LLC, Bear LLC, and Chief Mountain LLC, which collectively operate 120 megawatts of capacity supporting 4.4 EH/s of hashrate with fleet efficiency of 25.7 J/TH. This comes just months after Cipher signed a $5.5 billion, 15-year agreement with Amazon Web Services to supply power and space for AI workloads.

Canaan also purchased 6,840 Avalon A15Pro mining rigs from Cipher, which is converting its Black Pearl facility into an AI and high-performance computing data center. The strategic move reflects how Bitcoin mining infrastructure is increasingly being repurposed for artificial intelligence applications, creating new revenue streams in the crypto sector.