Intel is hopeful that its foray into crypto mining will help it reclaim some of its market shares.
Intel, one of the world’s leading semiconductor chip producers by revenue, is slated to debut its bitcoin mining chip later next month in an effort to profit from the expanding mining sector in cryptocurrency.
According to programme plans for the next International Solid-State Circuits Conference, which will be held Feb. 19-26, the chip giant will debut its “Bonanza Mine: An Ultra-Low-Voltage Energy-Efficient Bitcoin Mining ASIC.”
ASIC, or application-specific integrated circuits, is a type of integrated circuit chip that is developed for specific applications. In the instance of crypto mining, ASICs are meant to solve a crypto mining puzzle more efficiently through hashing power.
Intel is hoping that its foray into crypto mining would help it reclaim some of its lost market shares following a disastrous choice in 2014 to opt-out of extreme ultraviolet (EUV) machines used in the advanced chip manufacturing process.
The machines that Intel rejected at the time employ a laser with EUV light in the production process, allowing competing manufacturers, such as Taiwan’s TSMC, to fabricate chips on a far smaller scale than previous methods while including more transistors per chip. Intel wants to get its own fleet of EUV machines operational by the end of the year.
Providing tools and shovels to miners during another cryptocurrency boom has proven profitable for huge firms such as Bitmain and Whatsminer. Intel hopes that its latest initiative will compensate for some of the company’s disastrous mistakes in the past.
Depending on the month, overall revenues from bitcoin mining revenue range from $1 billion to $1.7 billion, for a yearly revenue of roughly $17 billion, according to data from The Block. Meanwhile, the sales revenue of mining rigs from companies like Bitmain was anticipated to be in the billions of dollars.
“It’s not surprising to see hardware manufacturers seek out new lines of production to increase their bottom line,” said William Foxley, Compass Mining’s publicity director.
Foxley also stated that, while Intel’s ASIC may have long-term potential in further professionalizing the Bitcoin mining sector, Bitmain, and to a lesser extent Whatsminer, would remain the major ASIC maker.
“There’s simply too far a gap for players like Intel to make up,” said Foxley.
While specifics on Intel’s new ASIC are limited, the moniker suggests that the chipmaker is seeking to address one main worry in the Bitcoin mining process and increasing hashing power energy efficiency.
The Bitcoin Mining Council released research on Tuesday that pushes the discussion in a different direction. Critics frequently refer to bitcoin’s energy use as an environmental threat, but research released by The Bitcoin Mining Council on Tuesday points the discussion in a different direction.
According to the study, the worldwide crypto mining industry’s sustainable electricity mix increased to 58.5 percent in Q4 2021, up 1 percent from the previous quarter, making it “one of the most sustainable industries globally.”
Keeping production costs low is critical in any market for maximizing profit, and this is especially true when it comes to the cost of mining cryptocurrencies. The choice of the correct machines, as well as places around the world that are well-suited and politically friendly to miners, are the fundamental variations between the success and failure of miners’ operations.