Intel is already active in the bitcoin mining chip business, filing shows
Bitcoin mining company Griid quietly made a significant disclosure last month: a deal with tech conglomerate Intel to provide it with hardware.
The deal, first reported Tuesday by Fox Business, was detailed in Griid’s S-4 filing from late December. As reported in November, Griid is preparing to go public via a special-purpose acquisition vehicle, or SPAC, a process that will value the firm at more than $3 billion.
As the filing states:
“On September 8, 2021, GRIID entered to a supply agreement (the “Intel Supply Agreement”) pursuant to which GRIID may purchase Intel-designed BZM2 ASICs. The Intel Supply Agreement is for an initial four-year term and will automatically renew thereafter for one one-year period unless either party provides at least 90 days’ notice prior to the end of the initial four-year term. The Intel Supply Agreement provides GRIID with fixed pricing for the BZM2 ASICs for all orders placed prior to May 2023. In addition, subject to certain conditions, GRIID will be entitled to purchase from Intel at least 25% of all qualified Intel-designed ASICs through approximately May 2025.”
The deal is notable because this week it was revealed that Intel will be making public details about its in-house work on energy-efficient bitcoin mining ASICs, which are purpose-built chips designed for the energy-intensive mining process. Presenters from the firm will be appearing at a technology event late next month.
Indeed, the deal highlights the potential for Intel to obtain market share among US bitcoin miners. The US is home to the largest population of miners in the wake of China’s regulatory crackdown.
Redactions made in a publicly available copy of the supply agreement between Griid and Intel don’t show the price of each BZM2 ASIC or the performance metrics of the chip, including the per-chip hashrate or its power efficiency. Performance details will presumably be made public during next month’s presentation.
© 2021 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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Author: Michael McSweeney
