Jack Dorsey’s Bitcoin-focused company, Block Inc. (XYZ), has revealed a new mining system that could change the economics of crypto mining. The core product, called Proto Rig, is designed to extend a rig’s lifespan from the usual three-to-five years to more than ten. Instead of replacing an entire machine, miners can swap out only the hashboards as technology improves. This approach could reduce upgrade costs by up to 20% each cycle.
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The rigs are part of Block’s wider push to make Bitcoin mining more efficient and less wasteful. By lengthening the hardware’s lifecycle, miners may avoid the constant churn of expensive replacements that has long defined the industry.
Block Launches Fleet Management Platform for Large Miners
Alongside Proto Rig, Block has introduced Proto Fleet, an open-source management platform built for large-scale mining operations. The software is designed to help miners monitor performance, handle upgrades, and maintain rigs with greater efficiency.
The launch event took place at Core Scientific’s (CORZ) Dalton, Georgia, facility, a hub for U.S. Bitcoin mining. This marks another step in Block’s hardware ambitions, which began in April 2024 when it developed a 3-nanometer Bitcoin mining chip. Later that year, Block signed a supply agreement with Core Scientific to roll out its technology at scale.
Miners Face High Costs and Tight Margins
Bitcoin mining remains one of the most capital-intensive sectors in crypto. Professional-grade rigs can cost over $10,000 each, not including the heavy electricity costs needed to run them. Even with companies producing more than $50 million in Bitcoin daily, profits are vulnerable to swings in energy prices, mining difficulty, and hardware performance.
Block’s modular rig design could help protect those margins by letting miners upgrade gradually rather than replacing entire machines. That could be a game-changer in a competitive market where every efficiency counts.
Mining Firms Move Into AI and High-Performance Computing
The recent boom in artificial intelligence and high-performance computing (HPC) has prompted many mining firms to diversify. Some are repurposing their infrastructure for AI workloads, while others are holding onto their mined Bitcoin in anticipation of price gains.
Core Scientific is a prime example. After filing for bankruptcy in 2022, the company pivoted toward AI, securing a $3.5 billion lifeline from CoreWeave. In July 2025, CoreWeave (CRWV) acquired Core Scientific in a $9 billion deal. Hive Digital (HIVE) has followed a similar strategy, moving into HPC in 2022 and rapidly expanding that side of its business while continuing to mine Bitcoin.
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