Canaan has just made a very strategic move in Texas. The mining equipment manufacturer acquired a 49% stake in three existing mining operations for $40 million, consolidating its bet on a region that has become a Bitcoin mining hub in the U.S.

The three complexes—known as Projects ABC (Alborz, Bear, and Chief Mountain)—operate with 120 megawatts of power and generate approximately 4.4 exahashes per second of mining capacity. WindHQ holds the remaining 51%, maintaining majority control. In addition to the equity stake, Canaan also purchased 6,840 Avalon A15Pro devices that were operating at the Black Pearl site, now being converted into an AI-HPC data center.

What makes this interesting is the timing. While mining margins are tightening, miners are diversifying into AI and cloud services. Canaan is doing exactly that—combining mining infrastructure with AI-ready capacity. Other players like Hive, Hut 8, and TeraWulf are also riding this wave of conversion.

The economics of Projects ABC are quite attractive: electricity costs below 3 cents per kilowatt-hour, wind power generation, and access to demand response programs from the ERCOT grid. This provides a real cushion against price volatility. CEO Nangeng Zhang described it as a step to "align proprietary technology with critical infrastructure to drive efficiency and scale."

Funding all of this, Canaan issued 806 million Class A shares (about 53.7 million ADSs) at $0.7394 per ADS, with a six-month lock-up. It’s not an insignificant amount, but it signals confidence in expansion.

The Q4 2025 numbers reinforce this narrative. Revenue of $196.3 million (up 121% year-over-year), BTC mining revenue of $30.4 million, and treasury growing to 1,750 BTC. The installed hashrate reached 9.91 EH/s during the quarter.

In the bigger context, Canaan’s strategy reflects how the sector is adjusting. Low-cost energy + hardware + AI capacity = resilience against crypto cycles. If energy costs remain favorable and demand for AI infrastructure continues to accelerate, these Texas projects could be a real competitive advantage in the coming years.

What to watch: how the deployment of the 6,840 devices scales, whether ERCOT capacity commitments hold, and especially how Projects ABC will contribute to Canaan’s revenue and treasury growth through 2026. This is one of the most interesting moves we've seen from miners trying to reposition themselves.