Core Scientific has transferred at least $67.9 million to Jack Dorsey’s block starting in 2024. $BTC mining chip. It subsequently recorded a loss of $41.9 million for the right to cancel the purchase.
The data center operator paid Block $10 million in July 2024, another $21.3 million in January 2025, and a final payment of $36.6 million in January 2026.
However, a new quarterly report issued today states that Core “entered into termination and settlement agreements with Block, Inc. and Proto Global LLC to terminate existing contracts and all future delivery obligations for mining equipment thereunder, resulting in a loss of $41.9 million.”
Core has decided to scale back its mining obligations to Proto, Block’s mining hardware division, to complete a “strategic transition,” despite requiring a $41.9 million loss.
Block announced a purchase agreement for approximately 15 exahash of its 3-nanometer chips in July 2024. Core was Proto’s first chip customer and remains the only major buyer Block has ever named.
jack dorsey’s $BTC miner
At the time Core paid Block $31.3 million worth of deposits and advances through January 2025, it estimated it still had an additional $64.8 million in payments remaining.
In January 2026, the company actually paid an additional $36.6 million upon delivery of certain rigs.
It then posted a loss of $41.9 million to cancel the remaining orders.
While Core’s filing today doesn’t spell out exactly what the claims mean, the consequences of the layoffs are clear: Core realized it had suffered a significant loss by canceling its acquisition of Dorsey. $BTC Miner.
A day earlier, Core Scientific signed a 15-year lease covering 529 megawatts, most of which went directly to AMD. The company says these leases, which are unrelated to the block, could generate more than $14 billion in contracted revenue.
Rent a warehouse from AMD now Pays better than mining $BTC Use Dorsey chips.
Block end undetermined, its incubation unit $BTC As Protos reported at the time, the mining initiative and the so-called Web5 identity project are scheduled to launch in November 2024.
“We plan to reduce our investment in (music streaming service) TIDAL and reduce TBD, which will give us room to invest in our services,” the company’s shareholder letter for the quarter explained. $BTC Mining initiatives with strong product-market fit and healthy demand pipeline, and our self-custodial wallet, Bitkey. $BTC”
A healthy pipeline of demand resulted in customers incurring losses of $41.9 million to terminate their purchase agreements.
Dorsey elaborated further during Block’s Q2 2025 earnings call, saying of the mining division: “So we have some really happy customers and we’re going to grow the market and get a lot of market share.”
The week after that call, Block unveiled the Protorigminer on stage at Core Scientific’s facility in Dalton, Georgia.
Less than a year later, a major customer canceled the remaining orders at a loss.
Jack Dorsey wants you to mine Bitcoin using a new fictional gizmo
Jack Dorsey’s series of failures
Block’s disappointing mining rig continues a string of business failures. In fact, the company’s common stock has lost 68% of its value over the past five years.
In 2021, the company paid $237.3 million after adjustments for most of Jay-Z’s music service Tidal. Reuters The acquisition was widely seen as a “terrible business decision,” the report said.
Block later wrote off the full $132.3 million of its investment in Tidal as goodwill.
In July 2025, Dorsey shipped an open source messaging app called Bitchat. Within days, he added a warning to the code repository that the software “has not undergone external security review, may contain vulnerabilities, and does not necessarily meet stated security objectives.”
In January 2025, the U.S. Consumer Financial Protection Bureau fined Block $55 million and ordered it to pay up to $120 million in restitution over Cash App’s handling of fraudulent claims.
A day earlier, state financial regulators had fined the company $80 million.
In February 2026, Block told shareholders that it was “cutting Block’s workforce by almost half, from more than 10,000 people to just under 6,000. This means more than 4,000 people will be asked to leave or enter into discussions.”
Block will report its second-quarter 2026 results after the close of trading on Aug. 5, but has not commented on Core’s exit.
