Core Scientific has taken a $41.9 million loss to cancel its contract with Jack Dorsey’s Block for Bitcoin mining equipment. The agreement, which started in 2024, involved Core paying $67.9 million for mining chips. But the company decided to cut its losses and halt further deliveries.
Payments to Block were spread over several dates: $10 million in July 2024, $21.3 million in January 2025, and $36.6 million in January 2026. Despite these deposits, Core’s quarterly report reveals the costly termination agreement that wipes out future obligations and triggers the sizable loss.
This move reflects Core's strategic shift away from mining hardware tied to Block’s Proto division. Instead, the company recently inked long-term leases with AMD for data center power capacity, a deal expected to generate over $14 billion in contracted revenue. It seems renting space to AMD now outperforms relying on Dorsey’s chips for Bitcoin mining.
