Intel Corp. (INTC) Exits the Bitcoin (BTC/USD) Mining Hardware Market After Only a Year of Operation

Leading chip manufacturer Intel Corp. INTC entered the Bitcoin BTC/USD mining hardware market with its Blockscale chip line but ended it after only a year of operation.

As the dust settles on a year of operation, leading chip manufacturer Intel Corp (NASDAQ:INTC) has decided to discontinue its Blockscale line of chips for Bitcoin BTC/USD mining.

What Happened: Back in April 2022, Intel unveiled Blockscale, a set of application-specific integrated circuits designed for cryptocurrency mining in proof-of-work networks. The semiconductor giant planned to supply these chips to companies like Argo Blockchain and Block, Inc (NYSE:SQ).

However, despite initial optimism, Intel has discontinued the line, the last time the company took orders for the chips was in April 2023, and it appears that no more chips will be rolling off the assembly line.

The decision could be linked to the prolonged downturn in the cryptocurrency industry, with Bitcoin currently trading 55% below its 2021 highs.

But in a surprising turn of events, Bitcoin reached a price of $84,307.89 at the time of writing, marking an impressive 186% increase since Intel decided to stop making its mining chips.

Moreover, the mining sector has seen significant growth, with the total Bitcoin hash rate surging by more than 163%, according to Coinwarz data. Typically, an increase in hash rate implies an increase in computational power needed to perform mining, which, in turn, suggests the entry of more miners into the network.

Interestingly, Intel shares moved in the opposite direction, plummeting 39%, according to the last closed price of $19.74.

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Hash Rate Surges 163% As Bitcoin Price Skyrockets 186% Since Intel Quit Making Mining Chips

Coinwarz data shows that the total Bitcoin hash rate has surged by over 163% since April 2023, when Intel decided to stop making its Blockscale chips.

At the beginning of April 2023, the hash rate stood at 316.36 EH/s, but by Friday, it reached 843.93 EH/s. This surge in hash rate suggests that more miners have joined the Bitcoin network, increasing the computational power used to process transactions and secure the blockchain.

The last time Intel took orders for its Blockscale chips was in April 2023. At the time, the company faced difficulties filling orders for the chips due to a strong demand for its other products, especially those used in personal computers and data centers.

During the second quarter of 2023, Intel encountered a shortfall in the supply of components needed to manufacture its Blockscale chips, leading to a delay in production and deliveries.

As of Friday’s market close, Intel shares slipped 0.70%, finishing at $19.74. The stock price had minimal momentum and growth potential.

To compare how Intel’s competitor, Advanced Micro Devices Inc (NASDAQ:AMD), performed in terms of momentum and growth, check out Benzinga Edge Stock Rankings.

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