Canaan Inc has announced the acquisition of a 49% stake in Cypher Mining’s joint projects located in West Texas, including Alborz LLC, Bear LLC, and Chief Mountain LLC. These projects have a combined capacity of approximately 120 megawatts and a total computing power of about 4.4 exahashes per second, with a flat efficiency of roughly 25.7 joules per terahash. The deal is valued at around $39.75 million and will be paid by Canaan through the issuance of approximately 806 million Class A common shares to Cypher, equivalent to about 53.76 million ADS, subject to a six-month lock-up period. Additionally, Canaan has repurchased 6,840 Avalon A15Pro-AVG-221T mining machines from Cypher. This move aims to strengthen Canaan’s investment in the mining sector and enhance mining performance through energy-efficient usage. Canaan Inc, a well-known Chinese company specializing in cryptocurrency mining hardware, seeks to expand its presence in Texas and solidify its position in the U.S. mining industry. Cypher Mining, a U.S.-based company operating crypto mining projects using low-cost and environmentally friendly energy sources, is expected to benefit from this agreement as well. Efficient energy use and large-scale mining capacity are critical factors in the cryptocurrency mining industry, and this deal could open new growth opportunities for both companies. However, fluctuations in the cryptocurrency market and changes in energy prices may impact the investment’s future performance.
