Are Bitcoin miners best days behind them?
Leo Wang, VP of Canaan (NASDAQ: CAN), thinks that could be the case, despite being bullish on the underlying asset, Bitcoin.
Wang recently joined the Blockspace Podcast to discuss Bitcoin mining operations during the new era of AI/HPC. Wang covered their recent acquisition of Texas mining sites from Cipher Mining (NASDAQ: CIFR), Canaan’s 60.9% year-over-year sales growth, and the economics of mining in the current market.
Wang also shares insights into the regulatory landscape in China, the potential of stranded energy in North America, and how the Avalon Nano is bringing Bitcoin mining into the home.
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Canaan reports 60.9% year-over-year growth in ASIC equipment sales
Canaan sold 14.6 EH/s of new equipment during Q4 2025, representing a 60.9% year-over-year growth and 45.7% quarter-over-quarter growth. At a time when many big miners are getting out of the industry, the growth spurt is notable. Wang explains that the company focuses on North America and helps public company partners improve their return on investment. The manufacturer is known for friendly service and durable machines that operate stably without giving damaging surges to the grid.
Wang states, “It’s getting increasingly difficult for new miners to make money from this industry.”
Canaan acquires 49% equity in three Texas sites
The company recently purchased three joint ventures from Cipher Mining (NASDAQ: CIFR). This gives Canaan a 49% equity interest in mining sites in Texas that feature very promising energy setups. One site has 100% wind power behind the meter with a connection to the grid, allowing the facility to run on cheap power or sell it back to the grid when prices are high.
Read more: Bitcoin mining manufacturer Canaan purchases Cipher’s stake in West Texas mining projects
The other two former Cipher JV-sites have a track record of running below $0.03 per kilowatt-hour, a highly competitive rate. Expanding into self-mining helps the Canaan gain firsthand experience operating in West Texas and fits their target to own energy and infrastructure assets.
Canaan maintains zero self-mining exposure in China
Despite competitors building large inventories with hopes of placing them in Russia or China, Canaan chose a different path. Wang confirms that the company does not have any exposure in China, avoiding the risks associated with changing regulatory environments.
The national government in China officially banned working with Bitcoin mining internally in 2021. Instead, Canaan focuses on North America where there is a clear rule of law and a two-layer regulatory system that provides better predictability for business operations, Wang said.
Bitcoin price sits in the $65,000 to $70,000 range amid AI/HPC shifts
While Bitcoin trades range bound at $65,000 to $70,000, global hashrate has not significantly reduced to mitigate the damage to mining economics. Wang said miners are keeping their hashrate online because they either need revenue to maintain operations or because mining serves as a grid balancer for the increasingly high usage from AI/HPC.
Over the long term, Wang believes AI/HPC and Bitcoin mining can work hand in hand. HPC operations cannot easily be shutoff like mining, whereas Bitcoin mining provides the flexibility grid operators need.
“Is there going to be another bull market for Bitcoin? Absolutely, yes. It’s not HPC that’s taking away the attention . . . it’s the economics of mining itself that is going worse by time”.
