Core Scientific pays $41.9M to cancel its Proto mining-chip order as it exits bitcoin mining for AI

Block/Proto Rig & Proto Fleet

Core Scientific disclosed a $41.9M loss on a settlement that ended its 2024 agreement to buy about 15 EH/s of Proto's 3 nm chips, cancelling all future deliveries. It said it will no longer buy mining equipment, as AI hosting grew to 83% of its revenue. Core was the only large Proto buyer Block had named.

• The settlement cancels the contract and all future equipment deliveries.
• Core Scientific's Q2 2026 AI hosting revenue was $136.7M, 83% of the total; self-mining revenue fell 66%.
• Core plans to sell or decommission mining machines as it repurposes sites.
• Block had not publicly commented on the termination at the time.