Canaan Incorporated has announced the purchase of a 49% stake in joint Cypher Mining projects located in Texas, USA. These projects, known as Albers LLC, Bear LLC, and Chief Mountain LLC, are situated in West Texas and have a combined power capacity of approximately 120 megawatts with computing power around 4.4 exahashes per second (EH/s). The projects boast a flat efficiency of about 25.7 joules per terahash (J/TH). The deal is valued at approximately $39.75 million and will be settled by issuing around 806 million Class A common shares of Canaan, equivalent to roughly 53.76 million ADS, with a six-month lock-up period post issuance. Additionally, Canaan has repurchased 6,840 Avalon A15Pro-AVG-221T mining machines from Cypher. As a leading manufacturer of cryptocurrency mining hardware, Canaan’s investment aims to strengthen its presence in the mining sector. Cypher Mining is a prominent digital cryptocurrency mining company known for its energy-efficient Bitcoin mining operations. This investment is seen as mutually beneficial, providing a strong foundation for crypto mining in Texas’s low-cost, energy-rich environment. The agreement comes amid rising competition and growing concerns over energy consumption in the cryptocurrency market, where companies are seeking more efficient, lower-energy solutions. Moving forward, the partnership could enhance energy savings and mining capacity, though uncertainties in the cryptocurrency market and legal challenges remain important considerations.
Source: binance
