Core Scientific Axes $41.9M Mining Machine Deal with Block's Proto Division

Core Scientific, a US-based data center operator, has terminated its contract with Block (Proto division) to supply mining machines for Bitcoin mining. The company will pay $41.9 million to end the agreement, which was announced in July this year.

The deal involved Proto supplying 3-nanometer mining machine chips, corresponding to about 15 EH/s of hash rate, with options for additional purchases. Core Scientific has decided not to invest in new mining machines and instead focus on cash flow from existing miners.

The move comes as the company's second-quarter hosting revenue rose significantly, reaching $137 million, accounting for 83% of total revenue. However, self-mining revenue fell by 66% year-on-year to $21.5 million, accounting for 13% of total revenue.