Block completes development of three-nanometer chips, Jack Dorsey: Will launch a complete Bitcoin mining system

The CEO of the payment platform Block, Jack Dorsey, tweeted this morning that the company has completed the development of three-nanometer chips for Bitcoin mining and plans to offer standalone mining chips and a proprietary mining system, aiming to become the only major mining hardware supplier to provide a standalone mining chip solution. Source

we’re building a mining rig https://t.co/IKOQHNSHgO

— jack (@jack) April 23, 2024

Block Completes Development of Three-Nanometer Chips

Formerly known as Square, Block revealed in its latest announcement that the company has completed the development of three-nanometer chips for Bitcoin mining.

In October 2021, Block CEO Jack Dorsey shared his initial thoughts on decentralized Bitcoin mining in a tweet, and last April, they first completed the prototype design of five-nanometer Bitcoin mining chips.

As a significant milestone in the Bitcoin mining industry, we have completed the development of three-nanometer mining chips and are collaborating with leading semiconductor foundries globally for manufacturing.

Furthermore, Block expressed its intention to develop a Bitcoin mining system to address the challenges faced by major miners:

With our chip designs finalized, we are announcing our approach to supporting decentralized mining through the offering of independent mining chips and the development of a complete Bitcoin mining system.

The statement mentioned that Block will leverage its expertise in product development, system engineering capabilities, supply chain experience, and post-sales support to create a technologically advanced and differentiated mining solution:

With independent mining chips, we aim to be the only large, well-capitalized mining hardware provider with an independent mining solution.

Block Seeks Input from Major Miners

Block urges miners and mining communities to provide input on the challenges and difficulties they are facing, including aspects such as machine purchases, maintenance, transparency, software features, and post-sales support:

We hope that the upcoming independent mining system will drive innovation in the mining industry and support the development of new forms and use cases for mining systems.

Previously, Block's newly launched cold wallet Bitkey began shipping earlier last month.

Jack Dorsey's Cold Wallet "Bitkey" Goes on Sale for $150, Available in Taiwan

Is Operating a Mining Industry in the U.S. Profitable?

However, as a mining company headquartered in California, USA, the U.S. government's current stance towards miners is not very friendly, as evidenced by the introduction of the "Digital Asset Mining Energy Tax" (DAME) in the Fiscal Year 2024 Budget.

Reportedly, the proposal aims to levy a consumption tax of up to 30% on the electricity costs used for Bitcoin mining, projecting to generate $3.5 billion in revenue for the government over the next 10 years.

White House Proposes "Digital Asset Mining Energy Tax," Imposing 30% Tax on Mining Electricity, Estimated to Increase Tax Revenue by $3.5 Billion in Ten Years

The proposal continues to face opposition from legislators and industry professionals, with Republican Senator Cynthia Lummis from Wyoming expressing her concerns last month:

The proposed punitive 30% tax on digital asset mining will destroy any foothold that industry has in the U.S.