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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.

While we acknowledge the potential of CAN to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CAN and that has 100x upside potential, check out our report about this cheapest AI stock.

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

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The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

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