The End of an Era for Blockscale Mining Chips

In a significant shift in strategy, Intel has decided to pull the plug on its Blockscale Bitcoin mining chips, a decision fueled by the need to trim costs. This announcement, made public on April 18, 2023, has raised eyebrows in the cryptocurrency sector, which had anticipated a sustained commitment from the tech giant.

Timeline of Events

According to reports, Intel will cease taking orders for its Blockscale 1000 Series ASICs by October 20, 2023, with the final shipping scheduled for April 2024. This rapid timeline indicates a decisive pivot away from the cryptocurrency mining market, a space they once sought to dominate.

The Genesis of Blockscale Chips

Launched in April 2022, the Blockscale mining chips promised remarkable performance with a hash rate capability of up to 580 gigahash per second. These chips were designed to be modular, allowing mining firms to enhance their operations by merging multiple units. Notable users, including Argo Blockchain, Block, Hive Blockchain Technologies, and GRIID Infrastructure, jumped onboard, integrating the innovative chips into their mining setups.

Cost-Cutting and Corporate Adjustments

The decision to discontinue the Blockscale line aligns with a broader strategy to reduce operating costs. Intel CEO Pat Gelsinger has taken a personal hit, accepting a 25% pay cut back in February as part of an ambitious plan targeting annual savings of up to $10 billion by 2026. The company aims to pivot its focus toward manufacturing chips for external customers instead of internal projects.

What’s Next for Intel?

Despite the phase-out of the Blockscale chips, Intel is not exiting the crypto scene entirely. The company plans to keep an eye on “market opportunities” within the cryptocurrency domain, a statement that begs the question: will Intel return to mining chips in the future, or is this the final farewell?