Bitcoin Miner Marathon Digital Mines $16M in Kaspa To Diversify Revenue
Highlights:
- Marathon Digital has mined $16 million worth of Kaspa since September last year.
- The company emphasized that 99% of its focus will remain on Bitcoin mining.
- Kaspa’s native token, KAS, surges 8% following the company’s announcement.
In a June 26 announcement, Bitcoin (BTC) mining company Marathon Digital revealed it has mined $16 million worth of Kaspa (KAS) tokens since September 2023 to diversify from Bitcoin. The move enables the firm to “capitalize on the higher margins” associated with Kaspa mining machines, which have reached up to 95% in some cases, the company said.
Today we're announcing that we have been actively mining Kaspa.
Diversification has been key to our investments in energy solutions and tech innovations, and it remains crucial in our digital asset compute operations. Read the full press release: https://t.co/rwiXIJCx7q
— MARA (@MarathonDH) June 26, 2024
Adam Swick, Marathon’s chief growth officer, stated:
“By mining Kaspa, we are able to create a stream of revenue that is diversified from Bitcoin. Marathon was uniquely positioned to mine Kaspa and to capitalize on the higher margins that exist for those who can deploy Kaspa ASICs today.”
Marathon Mines 93M KAS Tokens
In May 2023, Marathon began assessing Kaspa as a means to diversify revenue streams and leverage its existing infrastructure more effectively. After successfully deploying its first Kaspa ASICs in September last year, Marathon began scaling its operations. Since September, Marathon has successfully mined a total of 93 million KAS tokens, estimated to be worth approximately $16 million. KAS tokens have skyrocketed by 420% since then, while BTC has increased by 135%.
The company has acquired around 60 petahashs of KS3, KS5, and KS5 Pro ASICs. Currently, 30 petahashs of Kaspa ASICs are working in its self-owned and operated facilities in Texas. The remaining ASICs are expected to be fully energized by Q3 2024.
Marathon Affirms Bitcoin Focus Amidst Kaspa Expansion
Marathon’s Vice President of Investor Relations, Robert Samuels, clarified that the company’s primary focus remains on Bitcoin. He emphasized that Kaspa mining represents only 1% of Marathon’s energy capacity once fully deployed. Samuels added, “Let’s not try and spin it any other way. To say we are ‘pivoting’ is wrong and irresponsible.”
FYI – Kaspa will represent just 1% of our energy capacity once fully deployed. Let's not try and spin it any other way. To say we are "pivoting" is wrong and irresponsible.
— Robert Samuels (@RobSamuelsIR) June 26, 2024
The company has successfully mined 9,761 BTC worth about $595 million since September. This underscores that its Kaspa mining operations contribute only a fraction of its total mining revenue.
KAS Surges As Marathon Digital Broke the News
Following the news, the price of Kaspa significantly increased. As of writing, it is trading at $0.174, marking an 8% increase in the last 24 hours. It has also experienced a 170% surge in trading volume. The crypto asset has surged 19% over the last 7 days and 25% in the past 30 days, indicating an optimistic outlook for the altcoin this month.
Kaspa’s GhostDAG Protocol Distinguishes it from Other PoW Networks
Kaspa is a cryptocurrency designed to deliver a high-performing, scalable, and secure blockchain platform. Its distinguishing feature is the use of the GhostDAG protocol, a proof-of-work (PoW) consensus mechanism that enables faster block times and higher transaction throughput compared to typical blockchains. Unlike Bitcoin, GhostDAG allows for the production of multiple blocks simultaneously.
According to Marathon, this approach speeds up transactions and boosts block rewards for miners. Kaspa ranks as the fifth largest proof-of-work cryptocurrency, with a market cap of $4.1 billion. Currently, there are 24 billion KAS tokens in circulation, according to CoinGecko data.
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Syed Ali Haider
Syed Ali Haider is a contributing crypto writer for Crypto2Community. He is a crypto and blockchain journalist with over six years of experience. Syed Ali is a Blockchain enthusiast and writer passionate about enhancing the acceptance, adoption, and integration of Blockchain technology worldwide. He has also advocated for digital freedom and cybersecurity for many years. Haider has been featured in a number of high-profile crypto and finance outlets, including Coincult and more.
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