Core Scientific is set to significantly increase its Bitcoin mining capacity by adding 15 EH/s through Block’s new 3-nanometer ASICs. This partnership marks a major step towards decentralizing Bitcoin mining hardware and driving innovation in the industry.
The collaboration between Block Inc. and Core Scientific will see the integration of advanced chips into Core Scientific’s large-scale mining operations. The Proto team at Block, responsible for the development of the ASICs, expects these chips to deliver 15 EH/s of hashrate, with the option for additional volume. This deal represents one of the largest in the industry in terms of mining ASICs hashrate.
Thomas Templeton, the Lead of the Proto team at Block, highlighted the potential of this collaboration to advance and decentralize the mining industry. He praised Core Scientific’s operational excellence and expertise in mining as key factors in the partnership. Russell Cann, Core Scientific’s Chief Development Officer, emphasized the new technology’s role in supporting their significant hashrate growth plans and providing more options for mining companies.
The modular mining platform, developed with input from Core Scientific and ePIC Blockchain Technologies, aims to enhance efficiency, reliability, and uptime in large-scale operations. Earl Mai, CTO of ePIC Blockchain Technologies, stressed the platform’s goal of integrating Block’s ASIC chips into Core Scientific’s advanced infrastructure.
Proto’s broader mission includes increasing decentralization, transparency, and resiliency of the Bitcoin network through the development of mining chips, systems, and software solutions. The agreement with Core Scientific is a significant step towards enabling third parties to build tailored solutions using Proto’s mining chips.
Core Scientific also recently announced the conversion of its outstanding Secured Convertible Notes due 2029, eliminating $260 million of debt from the company’s balance sheet. This move comes after Core Scientific’s emergence from bankruptcy earlier this year. CEO Adam Sullivan highlighted the strengthened balance sheet and financial flexibility this conversion provides, allowing the company to focus on growth priorities and portfolio diversification.
The conversion was triggered by Core Scientific’s common stock trading price exceeding a specified threshold for 20 consecutive trading days. Approximately 45 million shares of common stock were issued in exchange for the convertible debt. This strategic financial maneuver is expected to enhance Core Scientific’s operational capabilities and market position in the bitcoin mining industry.