{"id":318643,"date":"2023-04-18T21:37:22","date_gmt":"2023-04-18T20:37:22","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=318643"},"modified":"2026-04-17T09:30:31","modified_gmt":"2026-04-17T08:30:31","slug":"intel-bitcoin-mining-chips-discontinued-despite-chip-efficiency-63m-revenue-boost-in-2022","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/intel-bitcoin-mining-chips-discontinued-despite-chip-efficiency-63m-revenue-boost-in-2022\/","title":{"rendered":"Intel Bitcoin mining chips discontinued despite chip efficiency, $63M revenue boost in 2022"},"content":{"rendered":"<p>Intel announced the end of first-gen Blockscale 1000-series Bitcoin-mining ASICs on April 18, despite the chips contributing both efficiency and a rise in revenue in 2022 \u2014 up from 2021.<\/p>\n<p>The announcement \u2014 initially reported by <a href=\"https:\/\/www.tomshardware.com\/news\/intel-discontinues-bitcoin-mining-blockscale-chips-no-future-gens-announced\">Tom's Hardware<\/a> \u2014 cited &#8220;a tighter focus on its IDM 2.0 operations&#8221; as the rationale behind the decision to discontinue the chips.<\/p>\n<p>However, the chip was part of the Accelerated Computing Systems and Graphics Group (AXG) revenue segment \u2014 which registered a $63 million increase in 2022 in comparison to 2021.<\/p>\n<figure id=\"attachment_318649\" aria-describedby=\"caption-attachment-318649\" style=\"width: 434px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-318649 size-full\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/04\/intel-1.png\" alt=\"Intel annual report: AXG Revenue $B\" width=\"434\" height=\"326\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/04\/intel-1.png 434w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/04\/intel-1-300x225.png 300w\" sizes=\"(max-width: 434px) 100vw, 434px\" \/><figcaption id=\"caption-attachment-318649\" class=\"wp-caption-text\">Intel annual report: AXG Revenue $B<\/figcaption><\/figure>\n<h2>Efficient but not cost-efficient<\/h2>\n<p>Intel Blockscale 1000-series chips were deployed by at least one public Bitcoin (<a href=\"\/coins\/bitcoin\/\">BTC<\/a>) mining company through 2022 and shown to be both efficient and profitable.<\/p>\n<p>In December 2022, Canadian Bitcoin mining firm <a href=\"https:\/\/cryptoslate.com\/companies\/hive\/\">Hive<\/a> Blockchain <a href=\"https:\/\/www.tomshardware.com\/news\/hive-earns-3-15-million-usd-by-lowering-power-use\">mined<\/a> a total of 213.8 BTC \u2014 worth $3.15 million \u2014 utilizing Intel Bitcoin-mining ASICs to do so.<\/p>\n<p>However, despite the improvement in efficiency and profitability offered by Intel's Blockscale 1000-series chips, Intel operating income costs Year-on-Year (YOY) increased almost 50% to $1.7 billion in 2022, from $1.2 billion in 2021.<\/p>\n<figure id=\"attachment_318660\" aria-describedby=\"caption-attachment-318660\" style=\"width: 405px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-318660 size-full\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/04\/intel-2.png\" alt=\"Intel annual report: AXG Operating Income (Loss) $B\" width=\"405\" height=\"285\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/04\/intel-2.png 405w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/04\/intel-2-300x211.png 300w\" sizes=\"(max-width: 405px) 100vw, 405px\" \/><figcaption id=\"caption-attachment-318660\" class=\"wp-caption-text\">Intel annual report: AXG Operating Income (Loss) $B<\/figcaption><\/figure>\n<p>These operating costs were &#8220;due to increased inventory reserves taken and investments&#8221; in Intel's product roadmap, according to the company's annual <a href=\"https:\/\/www.intc.com\/filings-reports\/all-sec-filings\/content\/0000050863-23-000006\/0000050863-23-000006.pdf\">report<\/a>.<\/p>\n<p>Committing to &#8220;delivering five technology nodes in four years&#8221; in 2022 \u2014 one of which was the first Intel Blockscale ASIC \u2014 Intel sought to accelerate its IDM 2.0 strategy by &#8220;investing in manufacturing capacity around the world.&#8221;<\/p>\n<p>Intel noted that its 2022 results were &#8220;impacted by an uncertain macroeconomic environment arising from inflation, the war in Ukraine, and COVID-19 shutdowns in [its] supply chain in China.&#8221;<\/p>\n<h2>Causation of the discontinuation<\/h2>\n<p>Intel's reasoning behind the discontinuation of its Bitcoin-mining chips is supported by the extra $500M in operating costs YoY in 2022 \u2014 lending further rationale to the finality of the company's decision.<\/p>\n<p>On the subject of the IDM 2.0 strategy, the firm said:<\/p>\n<blockquote><p>&#8220;Though we aggressively adjusted capital investments in 2022 to respond to changing business conditions, we still made significant investments in support of our IDM 2.0 strategy during the year.&#8221;<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>Intel announced the end of first-gen Blockscale 1000-series Bitcoin-mining ASICs on April 18, despite the chips contributing both efficiency and a rise in revenue in 2022 \u2014 up from 2021. The announcement \u2014 initially reported by Tom&#8217;s Hardware \u2014 cited &#8220;a tighter focus on its IDM 2.0 operations&#8221; as the rationale behind the decision to [&hellip;]<\/p>\n","protected":false},"author":1398,"featured_media":212241,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[35372,2376,37],"tags":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Intel Bitcoin mining chips discontinued despite chip efficiency, $63M revenue boost in 2022<\/title>\n<meta name=\"description\" content=\"Efficient but costly, Intel ends its Blockscale 1000-series Bitcoin-mining ASICs amid focus on IDM 2.0 strategy.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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