Block has announced its first customer for its 3nm mining ASICs. The buyer is Core Scientific, a major Bitcoin mining firm. This deal is significant in the history of Bitcoin mining, as it proves Jack Dorsey is a a real visionary far beyond Twitter.
Core Scientific will receive chips with 15 exahashes per second (EH/s) capacity. This will boost the company's hash rate by 60% compared to June 2024 levels. The agreement allows for additional volume.
Block's Proto team developed the new mining platform. It aims to improve efficiency and reliability for large-scale operations. Core Scientific will be able to optimize its data center resources.
Russell Cann, Core Scientific's Chief Development Officer, said the partnership will "define a new paradigm for scaled Bitcoin mining". He believes it will benefit operations and strengthen the Bitcoin network.
Core Scientific's stock is up 2% today. It has gained 167% in two months. The rally follows reduced concerns about miner capitulation after April's Bitcoin halving.
Block's shares haven't fared as well. They're down 1% today and 12% year-to-date. The stock remains far below its 2021 peak, and that is a bit worrisome for many of the Block's fans.
Block completed its Bitcoin mining chip in April. Jack Dorsey, Block's CEO, said it would help miners "survive and thrive" after the fourth halving. Miners feel insecure about halving events, and Dorsey feels this might be a point of interest for customers and investors.
Block claims this deal is one of the largest ASIC agreements in Bitcoin mining history. It's a big step for the company's efforts to "democratize Bitcoin mining".
But, the company is branching out beyond mining. In March, it launched Bitkey, a hardware wallet for Bitcoin self-custody, which is pretty in line with Dorsey's old passion for Bitcoin maximalism.