Intel, the US-based semiconductor giant, is ceasing production of its Blockscale Bitcoin mining processors just a year after entering the market. The company cites cost-cutting measures and a focus on IDM 2.0 operations as the primary reasons for this decision.
In April 2022, Intel introduced the Blockscale mining chips, boasting a hash rate of up to 580 gigahash per second. Early adopters included Argo Blockchain, Block, Hive Blockchain Technologies, and GRIID Infrastructure. However, Intel’s entry into the crypto mining chip market coincided with a crash in Bitcoin valuations, making the timing less than ideal.
Despite Bitcoin’s recent resurgence, breaking the $30,000 mark for the first time in nearly a year, Intel is still opting to exit the mining chip market. By terminating the Blockscale ASIC line, the company aims to prioritize the fabrication of specific chips for outside clients and reduce overall costs.
Intel CEO Pat Gelsinger has taken a 25% pay cut, and the company is targeting annual cost savings of up to $10 billion by 2026 through cost-cutting initiatives and efficiency gains. Although Intel is discontinuing its mining chip production, the company has expressed interest in continuing to explore “market opportunities” within the crypto space.