Intel "Bonanza Mine" Bitcoin ASIC Secures First Big Customer, a $3.3 Billion Crypto-Mining Startup

[AleksandarK]

Just a few days ago, we reported that Intel is preparing to unveil the company's first application-specific integrated circuit (ASIC) dedicated to mining cryptocurrency. To be more specific, Intel plans to show off its "Bonanza Mine" ASIC at the 2022 ISSCC Conference, describing the chip as "ultra low-voltage energy-efficient Bitcoin mining ASIC." We have yet to see how this competes with other industry-made ASICs like the ones from Bitmain. However, it seems like the startup company GRIID, valued at around $3.3 billion, thinks that the Bonanza Mine ASIC is the right choice and has entered a definitive supply agreement with Intel.

According to the S-4 filing, GRIID has "entered into a definitive supply contract with Intel to provide ASICs that we expect to fuel our growth. The initial order will supply units to be delivered in 2022 and GRIID will have access to a significant share of Intel's future production volumes." There are a few other mentions of Intel in the document, and you can see another exciting tidbit below.

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 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.

View at TechPowerUp Main Site

 

[Space Lynx]

Intel is a twat now too I see. Caring about the environment and apologizing to China, and the CEO making toddler level comments on competition, what an amazing company.

 

[Rexter]

How the heck is a company valued at 3.3 BILLION DOLLARS a "startup"?

 

[DeathtoGnomes]

Bitmain has some better competition now. I wonder how prices will change.

 

[bug]

I was reading this and, for some reason, the story about SpiceDAO buying the Dune book sprang into mind.

 

[R-T-B]

How the heck is a company valued at 3.3 BILLION DOLLARS a "startup"?

Because it just started.

A lot of these companies are very young. People don't comprehend the amount of money that is flowing into crypto in fresh startups, it's rather insane.

Bitmain has some better competition now. I wonder how prices will change.

No consumer miner will ever see this.

Bitcoin and other cryptos are slowly being wrested from the individual back into the wealthy and powerful folks money making hands. It's the death of a dream.

 

[silentbogo]

Because it just started.

A lot of these companies are very young. People don't comprehend the amount of money that is flowing into crypto in fresh startups, it's rather insane.

To be fair, the company is technically 5 years old(older, if you count from Adit and not GRIID), it's publicly traded on NYSE, and already had a big-ass merger. Hardly a "startup" by any definition.

 

[stimpy88]

After buying their own ASIC company, you have to wonder why AMD did not do this first.

 

[Space Lynx]

Because it just started.

A lot of these companies are very young. People don't comprehend the amount of money that is flowing into crypto in fresh startups, it's rather insane.


No consumer miner will ever see this.

Bitcoin and other cryptos are slowly being wrested from the individual back into the wealthy and powerful folks money making hands. It's the death of a dream.

going to be funny when governments the world over start banning crypto in one fell swoop, it will happen when they try to freeze the funds of the next dictator and the dictator laughs in USA's face and says hahaha you can't freeze our money anymore, we have crypto, no need for your banks anymore.

then the slow wits in Congress will be like oopsy doopsy we messed up. and correct their action. lol. really sucks being able to predict the future so easily. what a boring existence I have.

 

[R-T-B]

To be fair, the company is technically 5 years old(older, if you count from Adit and not GRIID), it's publicly traded on NYSE, and already had a big-ass merger. Hardly a "startup" by any definition.

Unfamiliar with this particular company, and would agree given those facts. Was speaking more generally.

going to be funny when governments the world over start banning crypto in one fell swoop,

This is a fantasy at this point. Too much of the USA's economic elite powerbase is deeply invested in crypto.

And nothing about this is funny.

 

[Space Lynx]

Unfamiliar with this particular company, and would agree given those facts. Was speaking more generally.


This is a fantasy at this point.

we'll see. but climate change will prob cause mass death in the millions due to famine before it does happen, I admit. so meh human hubris is amazing to watch

 

[R-T-B]

we'll see. but climate change will prob cause mass death in the millions due to famine before it does happen, I admit. so meh human hubris is amazing to watch

Climate change is a big issue but crypto is a drop in the bucket humanitys been using as a latrine for centuries now. I'll agree with the last sentence completely though.

 

[Tsukiyomi91]

well, there's money to make. It'll be a long while till the people who thinks of getting a slice of that crypto-pie will get nothing but an image of a pie instead of an actual one.

 

[TheoneandonlyMrK]

Intel is a twat now too I see. Caring about the environment and apologizing to China, and the CEO making toddler level comments on competition, what an amazing company.

And at the same time spreading Total lies that this will help gamer's get GPU.
It won't these can't mine what GPU can do none will be displaced.
Most sites have added a save gaming angle again.
Not here I'm glad to say this time.

 

[Frick]

Climate change is a big issue but crypto is a drop in the bucket humanitys been using as a latrine for centuries now. I'll agree with the last sentence completely though.

"Others are worse" is a really bad excuse.

 

[neatfeatguy]

well, there's money to make. It'll be a long while till the people who thinks of getting a slice of that crypto-pie will get nothing but an image of a pie instead of an actual one.

As long as those digital images of pies are tied to their own NFTs....you know, because with a NFT your image is instantly worth something!

 

[mechtech]

Well that didn’t take long. Be nice if all the first world nations would ban crypto like China did.

 

[TheoneandonlyMrK]

Well that didn’t take long. Be nice if all the first world nations would ban crypto like China did.

Which time, they banned it three times unbanned it two so far, although they do have a state made crypto now so a third unban isn't guaranteed.

 

[mechtech]

Intel is a twat now too I see. Caring about the environment and apologizing to China, and the CEO making toddler level comments on competition, what an amazing company.

Weird for sure. As an engineer I would have thought he would have doubled down on R&D of intels own foundries and get them back on par with TSMC. I mean Intel does have the means to do this.

going to be funny when governments the world over start banning crypto in one fell swoop, it will happen when they try to freeze the funds of the next dictator and the dictator laughs in USA's face and says hahaha you can't freeze our money anymore, we have crypto, no need for your banks anymore.

then the slow wits in Congress will be like oopsy doopsy we messed up. and correct their action. lol. really sucks being able to predict the future so easily. what a boring existence I have.

Maybe. But most of those wealthy folk probably have lots of investments in crypto already and care about their own wallets more than their own country or it’s people. But I could be wrong.

 

[Space Lynx]

Weird for sure. As an engineer I would have thought he would have doubled down on R&D of intels own foundries and get them back on par with TSMC. I mean Intel does have the means to do this.


Maybe. But most of those wealthy folk probably have lots of investments in crypto already and care about their own wallets more than their own country or it’s people. But I could be wrong.

You're not wrong.

 

[Kapone33]

we'll see. but climate change will prob cause mass death in the millions due to famine before it does happen, I admit. so meh human hubris is amazing to watch

You could also add sad and worrying.

Well that didn’t take long. Be nice if all the first world nations would ban crypto like China did.

That was a ruse. They just banned it for individuals.

 

[efikkan]

Investing in Bitcoin mining in 2022 is beyond stupid. The time to mine Bitcoins was about 10 years ago. There are very few Bitcoins left to be mined. The resources wasted on this is one of humanity's most pointless endeavors.

(Note: I'm not saying cryptographic signing is worthless)

How the heck is a company valued at 3.3 BILLION DOLLARS a "startup"?

Issue price of shares * count of shares, from a round of venture capital financing. It means nothing in terms of the real value of the company, just that one investor bought at least 1 share at that price. If you want to understand this, look up some videos on the typical "silicon valley model" of financing startups, it's a ridiculous way of pumping up the value before going public and dumping the stock.

Too much of the USA's economic elite powerbase is deeply invested in crypto.

And nothing about this is funny.

It's certainly not going to be funny when the market finally realizes the intrinsic value of these crypto ventures is zero, and it's all based on the greater fool theory, let's just hope the impact on retirement funds etc. will be minimal. Unfortunately, stupid investors will jump on any bubble, tempting serious investors to join in based on the lucrative "gains", gains for those who exit in time…

 

[TheoneandonlyMrK]

Investing in Bitcoin mining in 2022 is beyond stupid. The time to mine Bitcoins was about 10 years ago. There are very few Bitcoins left to be mined. The resources wasted on this is one of humanity's most pointless endeavors.

(Note: I'm not saying cryptographic signing is worthless)


Issue price of shares * count of shares, from a round of venture capital financing. It means nothing in terms of the real value of the company, just that one investor bought at least 1 share at that price. If you want to understand this, look up some videos on the typical "silicon valley model" of financing startups, it's a ridiculous way of pumping up the value before going public and dumping the stock.


It's certainly not going to be funny when the market finally realizes the intrinsic value of these crypto ventures is zero, and it's all based on the greater fool theory, let's just hope the impact on retirement funds etc. will be minimal. Unfortunately, stupid investors will jump on any bubble, tempting serious investors to join in based on the lucrative "gains", gains for those who exit in time…

One thing I will say in bitcoins defence is at least crypto wasn't Started by governments.

They're going the way of crypto eventually regardless of public opinion, apple and Google pay and people's use of such just brings it quicker, there's shops not accepting cash Or card now wtaf.

So I would rather not have Google ,apple or a government coming up with a version of crypto with no accessable publicly auditable ledger system that they could then move funds around in as they wish.

Even when they make them gov coins they'll have to be based on a viable crypto system ,not one they make up.

And all those validating apple and Google pay by it's use should consider if they really want they're financial systems ran by a corporation solely for profit, you think cryptos closing banks at a record rate, it isn't.

 

[bummpr]

we'll see. but climate change will prob cause mass death in the millions due to famine before it does happen, I admit. so meh human hubris is amazing to watch
---------------------------------------------------------------------------------------
Climate change is a big issue but crypto is a drop in the bucket humanitys been using as a latrine for centuries now. I'll agree with the last sentence completely though.

OK Sheldor

 

[looniam]

imma just leave this here for no reason:

Intel Has Two Generations of Bitcoin ASIC: BZM1 is Built on 7nm, 137 GigaHash/sec at 2.5 W

www.anandtech.com