Intel has announced that its Blockscale 1000 series bitcoin mining chips have reached their limits and will not be replaced by a new generation of chips. The news comes exactly one year after the first Intel Blockscale processor (open in new tab) hit the market.

Speaking to Tom's Hardware (opens in new tab), Intel said the move is part of a broader focus in its IDM 2.0 strategy. [As a result, several business units were closed, downsized, or sold, including Optane memory products, the entire SSD division, and 5G modems, not to mention the fact that even before IDM 2.0, Intel had a certain track record of dabbling in new markets and then abruptly pulling out just as the attempt was about to take off. Needless to say.

According to Intel's "end of life" notice for Blockscale products, existing customers have until October to place final orders for Blockscale 1000 series chips. After that, however, the entire family of mining chips will cease to exist, with the final batch of Blockscale chips shipping in April 2024.

Intel has not specifically said that no new families of mining chips will be produced in the future. Instead, nothing new is officially planned, and Intel says it will "monitor the market" for opportunities.

Intel's Blockscale chips were said to be very competitive in terms of performance. Designed to accelerate SHA-256 processing in proof-of-work applications, Blockscale is capable of 580 gigahashes per second, Intel said. This apparently puts it in line with existing players in the mining chip market.

Intel also offered relief from the Chinese mining chip market, which fluctuates dramatically with the price of cryptocurrencies and consequently the demand for mining chips.

But Intel's exit from this market itself probably reflects the volatile nature of crypto mining: the timing of Intel's announcement of the Blockscale chip a year ago, at a time when the price of bitcoin and other cryptocurrencies was in freefall, and Intel's decision to withdraw from the Chinese mining chip market was a reflection of the volatility of crypto mining, It was unfortunate.

PR concerns may have also played a role. Intel marketed Blockscale as capable of running on a 256-chip array that consumed nearly 4,000W of power. At the time, Intel said it was "committed to advancing blockchain technology in a responsible manner." However, consuming vast amounts of power to mine cryptocurrencies is definitely not desirable.

Of course, the price of bitcoin has recently recovered. Therefore, it is not out of the realm of possibility that Intel may rethink its position. However, producing a new family of bitcoin-specific ASICs will not be something that can be done in a few months. Therefore, even if a new product is introduced, it is likely to be several years away.