Intel abandoned Bitcoin mining in 2023, but its Blockscale chips have now found a new home: the open ecosystem. A donation of 256,000 units to the non-profit organization 256 Foundation will enable developers and makers to experiment with industrial-grade hardware.
From decline to resurgence: the story of Blockscale
In 2022, Intel launched its second generation of specialized ASICs for Bitcoin mining, the Bonanza Mine (BZM2), under the Blockscale brand. These chips were designed to run the SHA-256 algorithm with competitive energy efficiency (23 J/TH) and speeds of up to 580 GH/s per chip. Intel’s ambition was to create a scalable block that, in configurations of up to 256 units, could compete with leading equipment from Bitmain.
However, the market moved too quickly. The drop in cryptocurrency prices and the dominance of Chinese manufacturers left Intel sidelined. In 2023, just a year after their launch, the company canceled the Blockscale program.
Block’s donation: 256,000 chips to open projects
Two years later, the chips are making a comeback. On September 2, 2025, the 256 Foundation confirmed receiving a batch of 256,000 BZM2 ASICs donated by Proto, the mining subsidiary of Block, Inc., Jack Dorsey’s company.
The delivery, equivalent to about 76 PH/s of total power (assuming 0.3 TH/s per chip at 0.7 V), will be distributed among four open hardware projects in the United States, each with 54,000 chips.
“We want this silicon in the hands of the community, not in warehouses. It’s a key step toward an ecosystem where users can inspect, modify, and operate their hardware freely,” explained Econalchemist, founder of the 256 Foundation.
A breath of fresh air compared to Bitmain’s closed model
This initiative is especially relevant in a sector dominated by manufacturers like Bitmain, which maintain a closed ecosystem with locked firmware and hardware that is difficult to modify.
Access to large volumes of ASIC chips is rare. Now, developers will be able to create open schematics, reference boards, and modular designs, reducing reliance on proprietary solutions.
Uses beyond Bitcoin
Although the BZM2 are SHA-256 ASICs, their applications could extend to:
- Heat reuse: home heating, pool water heating, or even drying food.
- Energy infrastructure: dissipating excess solar or wind energy in off-grid systems.
- 3D printing: efficiently heating print beds.
- Education and prototyping: teaching energy system design and specialized hardware in universities and hacklabs.
The foundation acknowledges there will be variations in performance and efficiency but trusts that the projects’ modularity will help mitigate these limits.
A model for the future of mining hardware?
The arrival of BZM2 chips into the open ecosystem marks a milestone: it’s the first time in years that commercial-grade silicon is being massively released to the DIY community.
The impact will depend on developers’ creativity and the support documentation created — Intel did not provide official manuals with the donation — but there are already initiatives working to publish schematics, firmware, and integration guides.
Frequently Asked Questions (FAQ)
What are Intel BZM2 Blockscale chips?
They are second-generation ASICs created by Intel in 2022 for high-efficiency Bitcoin mining.
Why did Intel abandon mining?
Strong competition from manufacturers like Bitmain and the bearish crypto market made continued operation unviable.
Who donated the chips?
Block, Inc. (Jack Dorsey’s company) through its division Proto, as part of a commitment to release surplus from its collaboration with Intel.
What impact could this donation have?
It could democratize access to mining hardware and open the door to alternative applications, from heating to educational projects.
via: tomshardware