Block, Inc., the company behind Bitcoin wallet and payment service, Square, is doubling down on its bitcoin mining hardware business. This move comes after President-elect Donald Trump’s victory, which may lead to a more favorable environment for the cryptocurrency mining sector. The company will reallocate resources towards mining equipment development, as they previously announced plans to scale back investments in TIDAL and sunset their “Web5” decentralized internet initiative, TBD.
Block’s mining initiative, Proto, is said to have a strong product-market fit and a healthy pipeline of demand. The company has also completed a 3-nanometer mining chip to rival Bitmain’s BM1600 chip. Block’s strategic pivot follows a January announcement to cut 10% of its workforce by the end of the year due to business and revenue expansion not keeping pace with company growth.
Despite this, Block posted strong Q3 2024 results with a 19% increase in gross profit to $2.25 billion year-on-year, and improved profitability with operating income at $323 million and net income of $284 million. Block’s mining initiatives include developing proprietary hardware, and they have already secured a deal with Core Scientific, a major player in U.S.
Bitcoin mining, to use their mining equipment for operations. This deal is being touted as one of the largest in the sector’s history.