Block's crypto mining hardware ambitions could eventually boost SQ stock

Did you ever imagine that Block (NYSE:SQ) would enter into the Bitcoin (BTC-USD)-mining hardware business? It seems that anything is possible in 2023. Block isn’t afraid to take chances, and while SQ stock is risky, a $100 stake could yield impressive returns.

Many people know about Block because of the company’s Square payments app. Notably, Block is adding nearly 100 new features to Square. Plus, Square recently launched its Tap to Pay software on Android for sellers in the U.K.

Yet, Square’s revenue-generating potential isn’t the only reason to consider a small position in Block stock. If you believe in the future of cryptocurrency mining, now’s a great time to get exposure to this niche market by investing in Block.

Intel Backs Away From Crypto Mining Chips

In a development that undoubtedly caught some off guard, Intel (NASDAQ:INTC) is reportedly discontinuing production of its Blockscale 1000 series Bitcoin-mining chips. Intel was quoting as saying, “As we prioritize our investments in IDM 2.0, we have end-of-lifed the Intel Blockscale 1000 Series ASIC [application-specific integrated circuit] while we continue to support our Blockscale customers.”

How does this relate to Block? Here’s the scoop: Just as Intel is backing away from cryptocurrency-mining chip production, Block is evidently going all-in on this niche market. Specifically, Block agreed to purchase Bitcoin mining hardware from Intel.

Or, as Block put it, the company is acquiring a “large volume of bitcoin mining ASICs from Intel, and just completed a purchase agreement with Intel.” Block is evidently diving headfirst into this industry, as the equipment acquisition will enable the company to “get to market more quickly.”

SQ Stock Could Benefit From Block’s Bold Venture

Block is already an established leader in point-of-sale payment software. To get SQ stock to the next level, however, Block must continue to take chances and innovate.

That’s precisely what Block is attempting to do with the purchase of Intel’s hardware. Already, Block has “moved forward with manufacturing a prototype” of the company’s “completed five nanometer design” for its Bitcoin-mining chips.

Moreover, Block isn’t afraid to experiment in developing crypto-mining hardware technology. To this end, Block intends to “experiment with design variants” for its Bitcoin mining ASICs. Additionally, Block has hinted at a timeline for this. Specifically, the company expects to “receive the prototypes back this fall” for its ASICs.

What to Do Now With Block Stock

As you can see, there’s much more to Block than the Square app. Block could become a power player in the market for cryptocurrency-mining chips. Acquiring hardware from Intel is a first step along this journey.

It’s a risky journey, of course, and there’s no guarantee of success for Block. However, just consider the multi-bagger potential for early investors. If you’re willing to wager $100, consider buying SQ stock as a bet on Block’s bold blockchain hardware venture.

On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.