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Core Scientific to add 15 EH/s through Block's 3nm Bitcoin mining ASICs

source-logo  cryptoslate.com  + 2 more 10 July 2024 14:16, UTC

Block Inc. and Core Scientific have announced an agreement to supply Core Scientific with Block’s new 3-nanometer mining ASICs.

Core Scientific will be the first to integrate these advanced chips into its large-scale mining operations. This collaboration is part of an ongoing effort to decentralize Bitcoin mining hardware and foster innovation in the mining ecosystem.

Block’s Proto team, which leads the mining initiative and the self-custody wallet Bitkey, developed these ASICs. The chips provided to Core Scientific are expected to deliver approximately 15 EH/s (exahashes per second) of hashrate, with an option for additional volume. This agreement marks one of the industry’s largest bitcoin mining ASIC deals in terms of hashrate.

Thomas Templeton, Lead of the Proto team at Block, highlighted the collaboration’s potential to advance and decentralize the mining industry. He emphasized Core Scientific’s reputation for operational excellence and deep expertise in mining as crucial factors in this partnership. Russell Cann, Core Scientific’s Chief Development Officer, noted the new technology’s role in supporting their significant hashrate growth plans and providing more options for mining companies.

The modular mining platform, co-designed with input from Core Scientific and ePIC Blockchain Technologies, is intended to improve efficiency, reliability, and uptime in large-scale operations. Earl Mai, CTO of ePIC Blockchain Technologies, emphasized the platform’s goal to integrate Block’s ASIC chips into Core Scientific’s advanced infrastructure.

Proto’s broader mission includes increasing the decentralization, transparency, and resiliency of the Bitcoin network through open and transparent development of mining chips, systems, and software solutions. This agreement with Core Scientific represents a significant step forward in Proto’s goal of enabling third parties to build tailored solutions using its mining chips.

Templeton stated that the approach aims to foster innovation and expand the Bitcoin mining hardware ecosystem. The company’s commitment to making mining ASICs available to a diverse range of customers highlights its dedication to the industry’s long-term growth.

Core Scientific reduces debt

Core Scientific also recently announced the mandatory conversion of its outstanding Secured Convertible Notes due 2029, triggered by strong business momentum and share trading performance. This conversion eliminates $260 million of debt from the company’s balance sheet, marking a significant milestone following Core Scientific’s emergence from bankruptcy earlier this year. CEO Adam Sullivan emphasized the strengthened balance sheet and financial flexibility this move provides, allowing the company to focus on growth priorities and portfolio diversification.

The conversion was triggered when Core Scientific’s common stock trading price exceeded the specified threshold for 20 consecutive trading days. This resulted in the issuance of approximately 45 million shares of common stock in exchange for the convertible debt. This strategic financial maneuver is set to enhance Core Scientific’s operational capabilities and market position, further enabling its efforts in the bitcoin mining industry.

cryptoslate.com

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