Core Scientific Records $41.9 Million Loss from Terminating BTC Mining Chip Purchase Agreement with Block

July 29th, according to Protos, data center operator Core Scientific terminated its BTC mining chip purchase contract with Jack Dorsey's Block at a cost of $41.9 million in losses. Core had previously paid Block a $67.9 million prepayment ($10 million in July 2024, $21.3 million in January 2025, and $36.6 million in January 2026). After terminating the contract, the remaining delivery obligations were canceled, and the prepaid amount resulted in a loss. Core chose to terminate the contract because leasing its data centers to AMD offered higher returns. Just one day before the termination, Core signed a 15-year lease with AMD covering 529 megawatts, which is expected to generate over $14 billion in contract revenue. Block's mining chip business is one of the company's series of business failures, with its stock price falling 68% in the past five years, a $132.3 million write-down on its Tidal music service investment, and a $55 million fine and up to $120 million in damages for Cash App due to fraud complaints.