Canaan has agreed to buy Cipher Mining’s stake in several West Texas Bitcoin mining projects in a deal worth about $40 million, in a mix of cash and stock. The move shifts a chunk of U.S. hash rate from a listed miner to one of the industry’s major equipment makers, deepening Canaan’s push to own and operate infrastructure, not just sell machines.
What Canaan Is Buying in West Texas
Cipher Mining has built out large‑scale mining sites in West Texas that tap into relatively cheap power and flexible load programs with local grids. In this deal, Canaan is acquiring Cipher’s equity stake and related rights in specific operational projects, rather than buying the entire company. Those interests typically include data center infrastructure, long‑term power agreements, and installed ASIC miner fleets.
Canaan obtains direct access to the bitcoin block reward stream generated at the sites by assuming these holdings. Additionally, it secures real-world testbeds to demonstrate to institutional purchasers the effectiveness of its newest mining rigs at scale.
Instead of relying solely on laboratory testing, this setup enables Canaan to improve firmware, cooling, and power management under real-world conditions.
For its part, Cipher unlocks roughly $40 million in value from older assets that might expand more slowly than its most recent creations. Its board may prioritize capital in different ways, using the money to enhance shareholder returns, fund more efficient growth, or pay down debt. The business does not completely exit the mining industry, as it still operates other mining operations.
Why the Deal Matters for Bitcoin Mining
The transaction demonstrates how Bitcoin mining is increasingly moving toward vertical integration, with hardware manufacturers and operators merging into a single stack. Canaan is currently involved in more aspects of the value chain, including site performance optimization, block reward earning, and ASIC creation. That can help a manufacturer whose revenue would normally be mostly dependent on cyclical machine sales.
A major rig supplier that owns substantial U.S. hash rate may influence how the mining market allocates new equipment. Canaan can choose to deploy its most advanced models into its Texas projects first, then sell the rest, which could sharpen the divide between well‑capitalized players and smaller miners that pay retail prices.
READ MORE: Mantle (MNT) Down Despite Aave V3 Driving TVL Surge
