Canaan (CAN) Expands North American Presence Through Strategic Acquisition of West Texas Mining Projects

Canaan Inc. (NASDAQ:CAN) is one of the best penny stocks under $1 to buy right now. On February 23, Canaan significantly expanded its North American footprint by acquiring Cipher Mining’s 49% equity interest in three West Texas mining projects, collectively known as the ‘ABC Projects.’ This all-stock transaction, valued at ~$39.75 million, was funded by issuing over 800 million Class A ordinary shares to Cipher, making them a significant shareholder in Canaan.

The deal also includes the acquisition of 6,840 Avalon A15Pro mining rigs, which were previously deployed at a Cipher site now transitioning into an AI-HPC data center. The acquired assets provide Canaan with access to 120 MW of operational power capacity and an operating hashrate of ~4.4 EH/s. Located in the competitive ERCOT market, these sites benefit from exceptionally low power costs, averaging sub-3 cents/kWh, through long-term grid contracts and off-grid wind power integration.

Close-up of Silicon Die are being Extracted from Semiconductor Wafer and Attached to Substrate by Pick and Place Machine. Computer Chip Manufacturing at Fab. Semiconductor Packaging Process.

By partnering with WindHQ, which retains a 51% stake, Canaan Inc. (NASDAQ:CAN) integrates its proprietary ASIC technology with localized expertise in energy infrastructure and grid stabilization. This acquisition marks a strategic shift for Canaan toward a systematic, asset-heavy energy model centered on direct US power applications.

Canaan Inc. (NASDAQ:CAN) researches, develops, designs, and sells ICs, as well as leases final mining equipment by integrating IC products for bitcoin mining and related components in the People’s Republic of China.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. Follow Insider Monkey on Google News.