Bitcoin News

Story: Core Scientific Cuts Block Deal at $41.9M Loss, Bets on AMD Leases

By James Thorp

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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…

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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…

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Core Scientific just walked away from Block, Inc. And it cost them nearly $42 million.

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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.

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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.

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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…

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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.

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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.

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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.

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Related: Uphold Cuts 85 Jobs and Bets the Company on Enterprise Crypto Infrastructure

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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.

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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.

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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.

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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…

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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,…

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