Marathon Digital Holdings Diversifies Mining Operations with Kaspa
Marathon Digital Holdings, a leading global crypto platform, recently announced that its mining activities for Kaspa have generated around $15 million worth of KAS since commencing in September last year. This move signifies Marathon’s strategy to expand and diversify its mining operations beyond Bitcoin.
Marathon’s Successful Kaspa Mining Operations
The company revealed in a recent statement that since initiating their Kaspa mining operations, they have successfully mined approximately 93 million KAS, equivalent to $15 million, by June 25. Kaspa, currently the 5th largest Proof-of-Work (PoW) crypto asset, boasts a market capitalization of $3.9 billion with significant trading volumes of $64.8 million.
- Blockchain’s circulation supply: 24 billion KAS
- Block rewards: Approximately 103.83 KAS per mined block
- Terminal supply: 28.7 billion KAS
Unique Features of Kaspa
While Kaspa shares similarities with Bitcoin in terms of decentralization and open sourcing, it stands out by utilizing a BlockDAG, enabling the simultaneous processing of multiple blocks – a contrast to Bitcoin’s single block every 10 minutes. This feature provides miners with increased opportunities to earn rewards.
Marathon’s Investment in Kaspa Mining
Marathon Digital acquired “60 petahash of KS3, KS5, and KS5 Pro ASICs,” capable of generating profit margins of 95% at the existing network difficulty. Currently, the company operates 30 petahash of Kaspa mining ASICs in Texas, with plans for additional mining capabilities in Texas by Q3 2024.
Strategic Diversification Initiatives
In line with its strategic growth goals, Marathon began exploring Kaspa in May 2023 to diversify its revenue streams. However, it wasn’t until September that the company deployed the initial batch of Kaspa ASICs, marking the beginning of its expansion into the Kaspa mining sector.
Adam Swick, Marathon Digital’s Chief Growth Officer, highlighted the strategic importance of mining Kaspa, stating: βBy mining Kaspa, we are able to create a stream of revenue that is diversified from Bitcoin, and that is directly tied to our core competencies in digital asset compute.β
Swick added that Marathon’s strong relationships with hardware manufacturers, robust balance sheet, and experienced team position the company as a key player in the mining industry. The company remains committed to supporting innovation in PoW ecosystems and solidifying its leadership position in the mining sector.
Seeking Diversification Amid Bitcoin Price Slump
Following Bitcoin’s significant price decline from 2022, miners have been exploring diversified revenue streams. While some have ventured into AI and computing services, others, like Marathon Digital Holdings, have opted for alternative cryptocurrency mining as a means to mitigate risk and enhance profitability.
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