Core Scientific Abandons BTC Chip Deal, Incurring $41.9 Million Loss

Core Scientific, a data center operator, has incurred a significant loss of $41.9 million after terminating its BTC mining chip procurement contract with Block, a company led by Jack Dorsey.

The termination occurred despite Core Scientific having paid Block a total of $67.9 million in advance payments. This amount was split into three installments: $10 million paid in July 2024, $21.3 million in January 2025, and $36.6 million in January 2026.

The contract termination means that Core Scientific will not receive the remaining BTC mining chips it had ordered from Block. This decision is expected to result in a loss of $41.9 million for Core Scientific due to the advance payments already made.