Intel launches ultra-low power Bitcoin mining ASIC, enters mining market to compete with Bitmain and MicroBT

Chip giant Intel officially enters the mining market with the launch of "ultra-low-voltage Bitcoin mining ASIC" Bonanza Mine chips in February. This move will pit Intel against competitors like Bitmain and MicroBT, as they vie for a share of the Bitcoin mining market. Intel closed down 1.69% on Tuesday at $54.76 and rose 0.05% after hours to $54.79.

Intel is one of the world's largest chip manufacturers, and is expected to launch a specialized cryptocurrency mining chip called Bonanza Mine at the International Solid-State Circuits Conference (ISSCC) on February 23, known as the "Olympics of Chips." This new product is understood to be a super low-voltage, ultra-energy-efficient Bitcoin mining ASIC (Application-Specific Integrated Circuit).

However, it is currently unknown whether the progress of the Bonanza Mine chip is close to market release or still in the research and development phase. Since it is being featured in Intel's "highly anticipated chip release event," the launch is expected to be imminent.

In the past, cryptocurrency mining has driven up demand and prices for graphics processing units, including those from Intel, sparking anger among gamers. Unlike its competitor Nvidia, Intel has stated that they do not plan to impose Ethereum mining restrictions on their graphics cards.

Bitcoin mining typically uses ASIC chips, which are specially designed processors. While CPUs and GPUs can also mine Bitcoin, their performance and energy consumption are not as efficient as ASICs, so the majority of Bitcoin miners use ASIC chips, with major ASIC suppliers including Bitmain.

Once a dominant force, Intel is striving for a comeback with a series of moves since 2019, facing setbacks such as delays in the 7nm chip production and outsourcing of 6nm cutting-edge technology, which shocked the market and led to a sharp decline in stock prices.

CEO Pat Gelsinger penned an article for the U.S. media at the end of June 2021, criticizing the U.S. government for subsidizing foreign companies setting up factories in the U.S. without keeping the technology and IP patents in the country, which was seen as a reference to TSMC's investment in a 5nm wafer fab in Arizona.

Bloomberg's senior tech columnist Tim Culpan praised TSMC's outstanding performance and directly pointed out that Intel is unlikely to surpass them in the short term. Intel's foray into mining chip manufacturing amidst the cryptocurrency boom remains to be seen if it can turn the tide.

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