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Core Scientific just walked away from Block, Inc. And it cost them nearly $42 million.
The data center operator terminated its purchase agreement with Block and Proto Global LLC, booking a $41.9 million loss in the process. Core had paid a total of $67.9 million for bitcoin mining chips from Block since 2024 — money it won’t be getting back. The decision showed up in a recent quarterly report, and it’s pretty much a clean break: no more future obligations to buy mining equipment from Block, but a painful write-down to go with it.
The payments came in three chunks. Core sent Block $10 million in July 2024, then $21.3 million in January 2025, and another $36.6 million in January 2026. That last payment alone was bigger than the first two combined, which makes the timing of the exit feel a bit awkward. No details on exactly when the termination was finalized, but the quarterly filing made it official.
AMD Leases Now the Real Play
Core didn’t just cut and run without a plan. The company signed 15-year leases for 529 megawatts of capacity, primarily with AMD, and those deals are expected to generate more than $14 billion in contracted revenue. That’s a very different business than selling mining chips. It’s basically a pivot from bitcoin mining hardware to data center infrastructure leasing — and the numbers make clear why Core’s leadership probably felt the Block deal wasn’t worth continuing.
Fourteen billion in contracted revenue over 15 years versus an ongoing commitment to buy mining equipment from a company whose mining division has struggled since launch. Not a hard call, probably, even with the $41.9 million sting.
Block’s bitcoin mining push started with some real ambition. Jack Dorsey, the CEO, announced the chip purchase agreement in 2024, and Core was the first and largest customer. Block launched its Proto Rig miner out of Georgia, and that was supposed to be the beginning of something bigger. But Core pulled out after the launch, which can’t be great optics for Block’s mining division.
Block’s Wider Business Under Pressure
Block’s problems aren’t limited to mining. The company’s stock has dropped 68% over five years — a steep fall for a firm that was once seen as a fintech darling. And the mining setback lands on top of a pile of other headaches.
There’s the Tidal situation. Block acquired Jay-Z’s music streaming service and ended up writing off $132.3 million as goodwill. Widely seen as a bad call. Then Cash App ran into serious regulatory trouble: the Consumer Financial Protection Bureau hit Block with a $55 million penalty in January 2025, plus additional redress of up to $120 million, tied to mishandled fraud claims. State financial authorities piled on with an $80 million fine. That’s a lot of money going out the door on the compliance side.
And in February 2026, Block cut its workforce from over 10,000 employees down to just under 6,000. That’s a significant reduction — nearly half the staff gone. Block also wound down its TBD unit back in November 2024, the division that had been responsible for both the bitcoin mining initiative and a Web5 identity project. Resources from TBD got redirected toward mining efforts and Bitkey, Block’s self-custody bitcoin wallet.
So Block is trimming, restructuring, refocusing. But the mining division hasn’t really found its footing, and Core’s exit makes that harder to ignore.
Block hasn’t commented publicly on Core Scientific’s decision. The company is preparing to release its Q2 2026 results on August 5, and those numbers will get a close look from investors already watching the stock’s multi-year decline.
Core’s move fits a broader shift happening across the industry. Data center operators are finding that leasing infrastructure to large tech companies can offer more predictable, long-term revenue than mining operations, which stay exposed to bitcoin price swings and hardware depreciation cycles. It’s not a glamorous pivot, but it’s a stable one.
The $41.9 million loss stings, but Core locked in $14 billion in contracted revenue on the other side of the trade. Block, meanwhile, heads into its Q2 earnings report with a departed flagship mining customer, a halved workforce, and a stock down 68% over five years.
Block’s Q2 results are due August 5.
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Frequently Asked Questions
Why did Core Scientific terminate its deal with Block?
Core Scientific ended the purchase agreement with Block and Proto Global LLC as part of a strategic shift toward infrastructure leasing, taking a $41.9 million loss to exit future obligations to buy mining equipment.
How much will Core Scientific earn from its new AMD leases?
Core Scientific signed 15-year leases for 529 megawatts of capacity, primarily with AMD, expected to generate more than $14 billion in contracted revenue.
