Block, Formerly Square, Ventures into Bitcoin Mining with Own System Development

Block, the payments company founded by former Twitter CEO Jack Dorsey, is making waves in the crypto mining space with its latest announcement. The firm, previously known as Square, revealed on Tuesday that it is delving deeper into bitcoin mining by developing its own mining system.

According to a blog post by Block, the company has successfully completed the development of its three-nanometer mining chip, a project that has been in the works since April 2023. The firm is currently working with a leading global semiconductor foundry to finalize the design.

In response to feedback from the crypto mining community, Block has also decided to create a full bitcoin mining system, including system design. The company aims to address the challenges faced by mining operators and promote decentralization within the industry.

The bitcoin mining sector is currently dominated by a few major players, with Bitmain holding a significant market share. However, James Butterfill, head of research at CoinShares, believes that there is room for disruption in the industry due to the lack of serious competitors.

Block previously announced the completion of a five-nanometer bitcoin mining chip prototype in May 2023, using the same technology as Bitmain’s S21 mining machine. The company is optimistic about the potential efficiencies that could be achieved with the new three-nanometer chips.

As demand for bitcoin continues to rise, the importance of faster mining speed, lower costs, and enhanced reliability has become even more crucial following the recent halving event. Block’s foray into bitcoin mining signals its commitment to innovation and its determination to make a mark in the competitive crypto mining space.