Block Enters Bitcoin Mining Hardware: 3nm Modular ASIC Challenges Bitmain

On July 1, 2026, Block Inc. (NASDAQ: SQ), the payments company led by Jack Dorsey, officially announced its entry into the Bitcoin mining hardware market with a novel 3nm modular ASIC platform. The announcement marks Block’s most ambitious move yet in the Bitcoin ecosystem, following its earlier initiatives in mining software (Blockstream partnership) and mining pool concepts.

The Modular Mining Architecture: What Makes Block’s Approach Different

Unlike traditional ASIC miners that are shipped as monolithic units, Block’s platform is designed around a modular architecture. The core innovation lies in separating the compute (hash boards) from the power delivery and thermal management systems. This approach offers several potential advantages:

• Upgradability: Operators can swap out hash boards as newer chip generations become available without replacing the entire unit, potentially reducing e-waste and long-term capital expenditure.
• Flexible deployment: The modular form factor allows for more adaptable facility designs, accommodating various power and cooling configurations common in different global mining regions.
• Repairability: Individual hash boards can be replaced rather than entire ASIC units, lowering maintenance costs and reducing downtime.

The 3nm chip fabrication node represents a significant technical advancement. Compared to the 5nm and 7nm chips prevalent in current-generation mining hardware (S21, WhatsMiner M60 series), a 3nm process can theoretically achieve higher hash density and improved energy efficiency — critical metrics in the mining industry where margins are razor-thin and electricity costs dominate operational expenses.

Core Scientific Commits to 15 EH/s: The First Major Deployment

Core Scientific, one of the largest publicly traded Bitcoin miners, has signed a purchase agreement for an initial deployment of approximately 15 EH/s using Block’s modular platform. The agreement includes options for additional capacity expansion and joint development of next-generation mining infrastructure.

For Core Scientific, the partnership represents a strategic diversification away from single-source dependence on Bitmain and MicroBT. “We are always evaluating emerging technologies that can improve our operational efficiency and reduce supplier concentration risk,” said Core Scientific’s CEO in the announcement. The company currently operates approximately 30 EH/s of self-mining capacity across its U.S. data centers.

The 15 EH/s commitment from Core Scientific represents approximately 1.5% of the current network hashrate — significant for a first deployment but modest relative to Bitmain’s estimated 50-60% market share in ASIC shipments. However, Block has indicated that additional enterprise agreements are in advanced negotiations, with announcements expected in Q3 2026.

Market Context: A $11.72B Opportunity Under Pressure

The timing of Block’s entry is notable given the current state of the Bitcoin mining hardware market. The global ASIC mining hardware market is valued at approximately $11.72 billion in 2026, but industry economics have become increasingly challenging. Hash price — the revenue generated per petahash per day — has declined from $36-38/PH/s/day in Q4 2025 to approximately $29/PH/s/day in Q1 2026, a compression that has squeezed margins across the industry.

This hash price decline has been driven by two factors: the 7.15% increase in mining difficulty to 133.87T (June 26, 2026) and the approximately 30% decline in BTC price since late 2025. The combination has pushed many older-generation miners below profitability thresholds, with S9, S17, and early S19 machines becoming effectively stranded assets.

Public miners have responded by selling BTC reserves at an unprecedented pace. In Q1 2026, major listed miners sold approximately 32,000 BTC — a quarterly record exceeding the entirety of 2025. Marathon Digital, Riot Platforms, and CleanSpark have all disclosed significant dispositions as they seek to maintain liquidity and service debt obligations.

Can Block Really Challenge Bitmain?

The announcement has generated significant debate in the mining community. Supporters argue that Block’s entry comes at an opportune moment: operators are actively seeking alternatives to the dominant duopoly of Bitmain and MicroBT, and the modular architecture addresses long-standing frustrations with the inflexibility of traditional ASIC designs.

However, skeptics point to several significant challenges:

• Supply chain dominance: Bitmain controls a substantial portion of the global ASIC chip supply chain and has established manufacturing relationships that Block will need years to replicate or replace.
• Track record: Bitmain has shipped millions of ASIC miners over a decade. Block is entering the hardware business for the first time, and execution risk is substantial.
• Ecosystem integration: Bitmain’s miners are deeply integrated with mining pool software, firmware ecosystems, and repair networks globally. Block’s platform will need to build this ecosystem from scratch.

The Verdict: Key Metrics to Watch

Whether Block’s mining hardware platform succeeds will ultimately depend on three critical metrics:

1. Energy efficiency (J/TH): The headline metric for any ASIC miner. If Block can achieve efficiency figures competitive with or superior to the S21+ (26-29 J/TH), operators will take notice. If the 3nm chips deliver on their theoretical efficiency gains, Block could offer a compelling proposition.

2. Long-term uptime and reliability: Mining hardware operates in demanding environments 24/7. New entrants historically struggle with early-generation reliability issues that can undermine operator confidence. Block will need to demonstrate consistent field performance over multiple deployment cycles.

3. Scalability of manufacturing: A promising prototype means little if Block cannot scale production to meet demand. The company will need to demonstrate the ability to ship units at volume within reasonable timeframes — a challenge that has derailed previous mining hardware entrants.

MarsHub is a leading one-stop miner sales and mining farm hosting platform. We provide top brands including BITMAIN and MicroBT, with global shipping, 24/7 monitoring, and custom deployment plans. For bulk orders, hosting inquiries, or fleet optimization consultations, please reach out to our team directly.

This article is provided for informational purposes only and does not constitute investment advice. Always conduct your own research before making any financial decisions. Past performance of mining hardware is not indicative of future results.