Core Scientific’s main hash rate growth plans will be driven by Block’s 3-nanometer ASICs
An agreement has been announced between Block Inc. and Core Scientific to provide Core Scientific with Block’s new 3-nanometer mining ASICs.
Core Scientific will be the first to incorporate these sophisticated processors into its extensive mining operations. This partnership is a component of an ongoing initiative to promote innovation in the mining ecosystem and decentralize Bitcoin mining hardware.
These ASICs were developed by Block’s Proto team, which is responsible for the mining initiative and the self-custody wallet Bitkey. The processors supplied to Core Scientific are anticipated to generate a hashrate of approximately 15 EH/s (exahashes per second), with the potential for an additional volume. This agreement is one of the largest bitcoin mining ASIC transactions in the industry regarding hashrate.
Thomas Templeton, the Lead of the Proto team at Block, emphasized the potential of the collaboration to decentralize and advance the mining industry. In this partnership, he underscored the critical role of Core Scientific’s operational excellence and extensive mining expertise.
Russell Cann, the Chief Development Officer of Core Scientific, acknowledged the new technology’s contribution to the company’s substantial hashrate development plans and the expansion of mining companies’ options.
Intended to enhance the efficiency, reliability, and uptime of large-scale operations, the modular mining platform was co-designed with input from Core Scientific and ePIC Blockchain Technologies. Earl Mai, Chief Technology Officer of ePIC Blockchain Technologies, underscored the platform’s objective to integrate Block’s ASIC processors into Core Scientific’s technologically advanced infrastructure.
The broader objective of Proto is to enhance the decentralization, transparency, and resilience of the Bitcoin network by fostering the open and transparent development of mining processors, systems, and software solutions. Proto’s objective of facilitating the development of customized solutions using its mining processors by third parties is significantly advanced by this agreement with Core Scientific.
Templeton asserted that the objective of the approach is to promote innovation and broaden the Bitcoin mining hardware ecosystem. The company’s dedication to the industry’s long-term growth is underscored by its dedication to providing mining ASICs to diverse customers.
Core Scientific Decreases Its Debt
Additionally, Core Scientific has recently disclosed that its outstanding Secured Convertible Notes due 2029 must be converted due to robust business momentum and share trading performance. This conversion represents a significant milestone in the company’s history, as it eliminates $260 million of debt from its balance sheet following Core Scientific’s emergence from bankruptcy earlier this year.
The company’s ability to concentrate on growth priorities and portfolio diversification is facilitated by the strengthened balance sheet and financial flexibility that this move provides, as underscored by CEO Adam Sullivan.
Core Scientific’s common stock trading price exceeded the threshold for 20 consecutive trading days when the conversion was initiated. This led to the issuance of approximately 45 million shares of common stock in exchange for the convertible debt. This strategic financial maneuver is expected to improve Core Scientific’s market position and operational capabilities, facilitating its endeavors in the bitcoin mining industry.
