Twitter Founder’s Financial Technology Payment Company, Block, Purchases Bitcoin Mining Chips from Intel

04/28/2023 12:47 • Metaverse Matters • 130 views

According to reports, Twitter founder Jack Dorsey’s financial technology payment company Block recently purchased a large number of Bitcoin mining chips from Intel, accelerating its plan to enter the mining hardware market. This acquisition will help it push mining machines to the market as it focuses on developing its cutting-edge 3nm chips. Due to Intel’s announcement in February 2022 to stop producing chips for Bitcoin mining specific integrated circuits (ASICs), it has set a final production date of April 2024. Block plans to complete the design of its 5nm chip for Bitcoin mining this quarter and manufacture machines based on it. This acquisition means that the team can focus on 3nm design. Thomas Templeton, the head of Block hardware, stated that the first party products of Block will be launched early next year. When asked about the number of chips they purchased, he said it was enough to make up for the time they spent designing and producing their own 3nm chips.

Block may launch its self-developed Bitcoin mining machine in early 2024

Introduction

As per recent reports, Jack Dorsey’s financial technology payment company, Block, has stepped into the mining hardware market by purchasing a significant number of Bitcoin mining chips from Intel. This acquisition will help the company push its mining machines into the market while focusing on developing its cutting-edge 3nm chips. With Intel’s announcement in February 2022 to stop producing chips for Bitcoin mining specific integrated circuits (ASICs), Block aims to complete the design of its 5nm chip for Bitcoin mining by the end of this quarter.

The Acquisition

Block acquired a considerable number of Bitcoin mining chips from Intel. The move aims to accelerate the company’s plan to enter the mining hardware market. Thomas Templeton, the head of Block hardware, states that the team can now focus on 3nm design. This acquisition means that the company can manufacture the machines based on the 5nm design while transitioning to the 3nm production line. The purchase is equivalent to the time the company spends designing and producing its own 3nm chips.

The Significance of Block’s Entry Into the Mining Hardware Market

According to data, the mining industry has been the most profitable sector of the cryptocurrency market. Despite this profitable niche, large companies have yet to tap into it, making Block’s recent move a significant one. As demand for cryptocurrencies continues to rise, mining hardware purchases are becoming more and more commonplace. The move positions Block as a direct competitor against established mining hardware manufacturers such as Bitmain and Canaan.

Block’s Plans for the Future

Block plans to complete the design of its 5nm chip for Bitcoin mining this quarter and manufacture machines based on it. The company intends to launch its first party products early next year. The focus on 3nm chip design is attributed to Intel’s February announcement; the company will stop producing chips for Bitcoin mining ASICs, with a final production set for April 2024.

Conclusion

Block’s recent acquisition of Bitcoin mining chips from Intel marks its entry into the mining hardware industry. The move allows the company to bypass the gap of progress and development that occurs between chip design and production. Furthermore, the company’s intention to develop its 3nm chip design and manufacture machines based on it positions it as a competitor in the mining hardware industry. It is exciting to see the market’s response to Block’s entry into the mining hardware industry and how the company handles the ever-increasing demand for the mining sector.

FAQs

1. What is Block’s focus in the mining hardware market?

Block’s primary focus in the mining hardware market is developing its cutting-edge 3nm chips and manufacturing machines based on them.

2. When can we expect to see Block’s first party products in the market?

Block plans to launch its first party products early next year.

3. Why did Block acquire Bitcoin mining chips from Intel?

The acquisition was made to accelerate Block’s plan to enter the mining hardware market, enabling the company to push its mining machines into the market while focusing on developing its cutting-edge 3nm chips.
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