Block Secures Deal to Provide Core Scientific with Bitcoin Mining Chips

Block, the business founded by Jack Dorsey, has teamed up with Core Scientific, the pioneer in Bitcoin mining, to provide new 3-nanometer (3nm) mining chips.

With these new chips, Core Scientific should be able to mine at a rate of 15 (EH/s) more than their present rate of 24.6 EH/s. The transaction’s financial specifics have not been made public. Nevertheless, by hashrate, it’s among the biggest deals in the sector.

Today, Core Scientific and @blocks announced an ongoing project involving Block’s latest bitcoin mining chip.

-Core Scientific and Block will work together on a new miner to democratize Bitcoin mining
-Block to supply Core Scientific with ~15 EH/s of new 3 nanometer ASIC mining… pic.twitter.com/nWDnaSG4Tm

— Core Scientific (@Core_Scientific) July 10, 2024

These 3nm chips were created by Block’s Proto team to outperform current mining chips in terms of efficiency, dependability, and durability. A modular mining platform built with ePIC Blockchain Technologies will make use of the new chips. The goal of these new chips is to increase the sustainability and efficiency of large-scale mining operations.

The leader of Block’s Proto team, Thomas Templeton, emphasized that this collaboration is a crucial step toward decentralizing Bitcoin mining. Block wants to make mining technology more accessible. This aims to reduce the concentration of mining power among a few companies, especially in regions with strict crypto regulations.

Beyond Stocks and ETFs: The Future of #Bitcoin Mining Investments

Check out our latest article on Bitcoin mining-based digital securities.

This piece delves into how these securities offer a compelling alternative to traditional Bitcoin #Mining stocks and #ETFs, providing… pic.twitter.com/4DHP2Z6Mkm

— Magic Circle (@MagicCircleTech) July 11, 2024

Block started developing its own mining chips in 2021 to address a global chip shortage. By early 2023, they had created a 5nm chip and aimed to make mining technology open source. The 3nm chips are a significant improvement, offering better processing power and energy efficiency.

Meanwhile, Core Scientific, which has been mining Bitcoin since 2017, will be the first to use Block’s 3nm chips. Through this collaboration, Core Scientific will be able to increase its mining capacity and provide other miners additional possibilities. The chief development officer of Core Scientific, Russell Cann, said that this partnership will raise the bar for large-scale Bitcoin mining.
Recently, Core Scientific has branched out into artificial intelligence (AI) services in addition to Bitcoin mining, landing a $3.5 billion contract with cloud provider CoreWeave.

Today, Core Scientific and @blocks announced an ongoing project involving Block’s latest bitcoin mining chip.

-Core Scientific and Block will work together on a new miner to democratize Bitcoin mining
-Block to supply Core Scientific with ~15 EH/s of new 3 nanometer ASIC mining… pic.twitter.com/nWDnaSG4Tm

— Core Scientific (@Core_Scientific) July 10, 2024

Block is still well-known for its payment apps, such as Square and Cash App, but it is also making progress in the Bitcoin mining space. 

Block and Core Scientific’s collaboration is a significant step toward improving the efficiency and decentralization of Bitcoin mining, which will strengthen the network.