Block Inc. (NYSE:SQ) co-founder Jack Dorsey has shown great optimism about the potential of the Bitcoin (CRYPTO: BTC) mining chip market, terming it a "massive opportunity" for the company.
What Happened: During the Q2 earnings calls Thursday, Dorsey highlighted the current market dominance of Bitmain, the world's largest Bitcoin mining chip maker, whose products, according to him, had serious reliability concerns.
"Bitmain produces mining chips and rigs that fail a lot," Dorsey said, citing feedback from the market leader's customers.
He further emphasized the technological advantage Block's chips possess, stating they have access to a 3-nanometer fab, while Bitmain's chips are 6-nanometer. Dorsey believes this technological superiority will enable them to construct a more reliable and configurable product.
Dorsey also underlined that chips developed by Block were open source, allowing miners to tailor them for their own business requirements.
Last but not least, Dorsey expressed confidence in his company's ability to become the market leader in Bitcoin mining hardware.
Why It Matters: Dorsey's confidence in the Bitcoin mining chip market isn't unfounded. His financial technology firm made a historic sale of 3 nanometer (3nm) mining ASICs to leading Bitcoin miner Core Scientific Inc. (NASDAQ:CORZ) last month. This was one of the largest Bitcoin mining ASIC deals in the industry in terms of hashrate.
Dorsey, who co-founded Twitter (now called X), has shifted his focus to cryptocurrencies. He co-founded Block (formerly known as Square) and has also served on the board of directors for Bluesky, a decentralized social media platform.
Block reported a 20% year-over-year growth in gross profit in its Q2 financial report. Bitcoin gross profit was $67 million in the second quarter of 2024. The total amount of Bitcoin sold to customers, which Block recognizes as Bitcoin revenue, was $2.61 billion.
Price Action: Shares of Block were up 5% in after-hours trading, after closing 1.99% lower at $59.89 during Thursday's trading session, according to data from Benzinga Pro.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.