The payments-processing company Block Inc. has hired Perry Hothi, the former chief technology officer at Argo Blockchain PLC, to help develop its Bitcoin mining division, according to people familiar with the matter.
(Bloomberg) — The payments-processing company Block Inc. has hired Perry Hothi, the former chief technology officer at Argo Blockchain PLC, to help develop its Bitcoin mining division, according to people familiar with the matter.
Hothi will advise the new unit while it considers initiatives ranging from designing a Bitcoin mining rig, the integration between its wallet and mining services to energy management, said the individuals, who asked not to be named. Block and Hothi declined to comment on the move.
The hiring comes as the firm, formally known as Square, hunts for veterans from crypto-mining services companies to build out its mining division. Alejandro De La Torre, who was the vice president of Poolin for two years, joined Block in August. The firm posted several open positions with its mining unit on LinkedIn last week.
Block Chief Executive Jack Dorsey tweeted that the firm is considering building a Bitcoin mining system based on custom silicon and open source for individuals and businesses worldwide last October. The firm decided to move forward with the plan in January, Thomas Templeton, Block’s general manager for hardware, said in a thread on Twitter.
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The initiative aims to makes the capital-intensive Bitcoin mining sector more decentralized. Only a handful of manufacturers with proprietary chip designs are able to mass produce pricey specialized computers for Bitcoin mining. “For most people, mining rigs are hard to find. Once you’ve managed to track them down, they’re expensive and delivery can be unpredictable.” Templeton said in the thread earlier this year.
The new hires are also the latest efforts from the firm to develop crypto-related services. Along with the mining division, Block also detailed its plan for its hardware Bitcoin wallet in March. Block has teamed with crypto firm Blockstream Corp. to build a Bitcoin mining facility with Tesla’s solar-powered battery in Texas.
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The mining industry has been battered by low Bitcoin prices, soaring energy costs and steep competition among miners. Shares of large-scale mining companies such as Argo and Core Scientific Inc have tumbled this year.
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