Marathon Digital Holdings, a global cryptocurrency-focused platform, recently announced that their mining operations for Kaspa have been quite successful, generating approximately $15 million worth of KAS tokens since they started last September. This move was part of Marathon’s strategy to diversify their mining activities beyond Bitcoin.
According to a statement released by Marathon Digital, they have mined around 93 million KAS tokens by June 25, amounting to $15 million. Kaspa is currently the 5th largest Proof-of-Work (PoW) cryptocurrency, with a market cap of $3.9 billion and trading volumes of $64.8 million. The blockchain has a circulating supply of 24 billion KAS tokens, and miners earn about 103.83 KAS tokens for every block mined, with a total supply cap of 28.7 billion.
One of the key features of Kaspa is its use of BlockDAG, allowing for the simultaneous processing of multiple blocks, providing miners with more opportunities to earn rewards compared to Bitcoin’s single block every 10 minutes.
Marathon Digital invested in 60 petahash of KS3, KS5, and KS5 Pro ASICs for Kaspa mining, with plans to increase their mining capacity in Texas by Q3 2024. This strategic move was part of Marathon’s efforts to diversify their revenue streams and reduce dependence on Bitcoin.
Adam Swick, the Chief Growth Officer at Marathon Digital, highlighted the importance of mining Kaspa to create a diversified revenue stream that complements their expertise in digital asset computing. He emphasized Marathon’s unique relationships with hardware manufacturers, strong balance sheet, and team expertise as key advantages in mining Kaspa successfully.
Following the significant price decline of Bitcoin in 2022, many miners, including Marathon Digital, have been exploring alternative revenue streams. Diversification has become a common strategy among miners, with some venturing into AI and computing, while others, like Marathon, have turned to mining other cryptocurrencies like Kaspa.
Marathon’s commitment to supporting innovation in Proof-of-Work ecosystems and establishing themselves as leaders in the mining industry remains unwavering. The company’s strategic investment in Kaspa mining reflects their proactive approach to adapting to the evolving cryptocurrency market landscape.
As the cryptocurrency industry continues to evolve, Marathon Digital’s decision to diversify their mining activities with Kaspa could prove to be a lucrative move, positioning them for sustained growth and success in the competitive mining sector.