OAKLAND, Calif. - Block, Inc. (NYSE: SQ), a company known for its wide-ranging financial services technology, and Core Scientific (Nasdaq: CORZ), a prominent digital infrastructure and bitcoin mining firm, have announced a significant agreement.
Core Scientific is set to receive Block's advanced 3 nanometer (3nm) mining ASICs, a move representing roughly 15 exahashes per second (EH/s) of computing power. This deal, which allows for further expansion, is one of the largest of its kind in the bitcoin mining sector by hashrate.
The partnership aligns with Block's Proto team's aim to democratize bitcoin mining and foster innovation within the ecosystem. The team is developing a modular mining platform that integrates these new ASIC chips. The anticipated benefits include increased efficiency, reliability, and improved operational uptime for large-scale mining operations like those managed by Core Scientific.
Additionally, the design emphasizes sustainability and is compatible with existing mining infrastructures, promoting the reuse of non-ASIC components.
Thomas Templeton, heading the Proto team at Block, stated that the collaboration with Core Scientific is expected to set a new standard in the industry, providing customized solutions that leverage Block's ASIC technology. Core Scientific's Chief Development Officer, Russell Cann, echoed this sentiment, highlighting the potential for the next generation of mining technology to support the company's growth and offer more options to the mining industry.
ePIC Blockchain Technologies, which has been co-designing a modular platform with input from Core Scientific, sees this integration as a step towards redefining efficiency and reliability in large-scale mining operations.
This agreement marks a significant advance for Proto's mining chip program, aiming to decentralize the mining process by enabling third parties to create custom solutions with Proto's chips. Such strategies underline Block's long-term dedication to the Bitcoin mining industry, with plans to make these ASICs available to a broad range of customers over time.
Block, Inc., formerly known as Square, Inc., is a multifaceted technology company that includes Square, Cash App, TIDAL, and TBD. It offers a suite of tools that facilitate access to the economy for a diverse audience, from sellers and consumers to artists and developers.
he information for this article is based on a press release statement.
In other recent news, Core Scientific, Inc. has secured high-performance computing (HPC) hosting contracts totaling 270 megawatts (MW), projected to generate over $4.7 billion in revenue over the next 12 years. The company's operational infrastructure has expanded to 832 MW following a 72 MW expansion at its Denton, Texas data center. Core Scientific mined 430 bitcoins in June, contributing to a total of 1,680 bitcoins in the second quarter.
The company has been the subject of multiple analyst upgrades, with H.C. Wainwright and Compass Point increasing their price targets for Core Scientific. Core Scientific CEO, Adam Sullivan, has secured a new employment agreement, which includes a base salary of $625,000 and an annual incentive target of 125% of the base salary, contingent upon performance criteria.
The company recently expanded its hosting agreement with CoreWeave, expected to generate an additional $1.225 billion in cumulative revenue.
These developments underscore the company's growth strategy.
InvestingPro Insights
As Block, Inc. (NYSE: SQ) and Core Scientific (Nasdaq: CORZ) forge a partnership to enhance bitcoin mining efficiency with advanced technology, it's worth noting the financial metrics and expert analysis that might shape Core Scientific's trajectory. With an adjusted market capitalization of $1.7 billion USD and a significant quarterly revenue growth of 48.6% in Q1 2023, Core Scientific is showing signs of robust expansion.
InvestingPro Tips for Core Scientific indicate a promising outlook, with net income expected to grow this year and analysts predicting the company will turn profitable within the same timeframe. Additionally, Core Scientific has shown a strong return over the last three months, with a price total return of 205.43%. This could be a reflection of investor confidence in the company's growth potential and the recent strategic moves such as the partnership with Block, Inc.
InvestingPro data also reveals an impressive 177.91% year-to-date price total return as of 2024, underscoring the company's performance in the market. While Core Scientific's P/E ratio stands at a high 81.2, the company's significant investments in technology and infrastructure, as highlighted by the recent deal, may justify the valuation to investors looking for growth in the burgeoning bitcoin mining industry.
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