Jack Dorsey’s Block Sells First Bitcoin Mining Chips to Core Scientific

Jack Dorsey’s financial services company Block has announced the first buyer of its 3 nanometer (3nm) mining ASICs—the company’s long-vaunted technology aiming to “democratize Bitcoin mining.”

That company is Core Scientific, one of the largest publicly traded Bitcoin mining firms that came roaring out of bankruptcy earlier this year. Block has agreed to provide Core with 15 exahashes per second (EH/s) worth of chips, which would represent a 60% increase to the mining firm’s energized hash rate as of June 2024.

“The agreement provides the option for additional, significant volume and is one of the industry’s largest Bitcoin mining ASIC agreements announced, in terms of hashrate,” wrote Block in a Wednesday press release.

Developed by Block’s Proto team, the company claims the new mining platform being built around its mining chip will “create improved efficiency, reliability, and uptime in large-scale mining operations.” Firms like Core Scientific, for instance, will be able to optimize their use of space and operational resources within their data centers.

“Together, Block and Core Scientific are working to define a new paradigm for scaled Bitcoin mining, one designed to deliver important operational benefits while contributing to the longevity and vitality of the Bitcoin Network,” said Core Scientific Chief Development Officer Russell Cann, in a statement.

Core’s stock (CORZ) is up over 2% on the day, marking an impressive 167% gain compared to two months prior. The stock has rallied alongside other public miners as fears surrounding miner capitulation following April’s Bitcoin halving event have finally started to blow over.

Block (SQ) hasn’t been so fortunate: the company’s shares are down over 1% on the day, and nearly 12% since the start of the year. Unlike Bitcoin, the share price has failed to fly anywhere close to its 2021 highs.

Block first announced the completion of its Bitcoin mining chip in April. Dorsey emphasized that the system would help miners of “all types to survive and thrive in the fifth mining epoch,” referring to the period after Bitcoin’s fourth halving.

Aside from new mining infrastructure, Block began shipping its Bitkey hardware wallet in March—a rock-like device for beginner-friendly, multi-signature Bitcoin self-custody.

Edited by Andrew Hayward

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