Core Scientific Ditches BTC Mining Chips from Jack Dorsey's Block

Core Scientific has ended its contract with Jack Dorsey's Block to purchase BTC mining chips. The data center operator paid Block at least $67.9 million for the chips, but took a $41.9 million loss when it canceled the remainder of the order.

The loss was incurred despite Core having already paid Block $31.3 million in deposits and prepayments by January 2025. It still estimated another $64.8 million in payments to come at that time.

This move marks the latest in a series of business failures for Block, including the write-off of its Tidal investment as goodwill and a $55 million penalty related to Cash App's handling of fraud claims.