Block, Inc (NASDAQ:SQ), formerly known as Square Inc, is looking into building its own Bitcoin mining ASIC (application-specific integrated circuit).
What Happened: According to a recent LinkedIn job posting, Block is looking to hire a custom digital design lead to join the team that will help build the “next generation” of microchips used to mine Bitcoin.
In a series of tweets in October 2021, Block CEO Jack Dorsey touched on some of the key features that would be included in the open-source Bitcoin mining system based on custom silicon.
“Mining needs to be more distributed. The core job of a miner is to securely settle transactions without the need for trusted 3rd parties. This is critical well after the last bitcoin is mined. The more decentralized this is, the more resilient the Bitcoin network becomes,” stated Dorsey at the time.
Why It Matters: The demand for mining Bitcoin coupled with strained supply chains and a shortage of chips across the globe has led to the massive surge in prices of ASICs (application-specific integrated circuits).
Compass Mining’s Zack Voell estimates that ASIC prices jumped over 25% at the start of Q3 2021. “Obviously, whichever direction bitcoin’s price goes, ASIC prices will follow,” wrote Voell.
Dorsey’s aim with Block’s Bitcoin mining system will be to make mining more accessible to everyone. According to the Block CEO, “Bitcoin mining should be as easy as plugging a rig into a power source.”
Price Action: As of Tuesday morning, Bitcoin was trading at $41,822.52, gaining 2.18% in the last 24 hours.