TL;DR
- Marathon Digital diversifies its mining operations by adding Kaspa (KAS) to its portfolio.
- The company has mined approximately 93 million KAS, valued at $15 million.
- Kaspa is positioned as the fifth cryptocurrency by market capitalization in the Proof of Work (PoW) system.
Marathon Digital (MARA), known for its prominent involvement in Bitcoin (BTC) mining, has recently announced its foray into mining Kaspa (KAS), a PoW-based layer-1 cryptocurrency.
This strategic decision seeks to diversify the company’s revenue sources beyond Bitcoin, taking advantage of its existing infrastructure and strong relationships with hardware manufacturers.
Since the launch of this initiative, Marathon has successfully mined approximately 93 million KAS as of June 25, 2024, representing an approximate market value of $15 million.
Adam Swick, Chief Growth Officer at Marathon, explained that this move allows them to generate additional revenue aligned with their core capabilities in digital asset computing.
Kaspa, currently ranked as the fifth largest cryptocurrency by market cap on the PoW system with over $4.1 billion, offers Marathon a new avenue to explore and capitalize on within the cryptocurrency ecosystem.
With a maximum supply of 28.7 billion KAS and superior transaction speed thanks to its BlockDAG mechanism, which allows one block per second, Kaspa presents significant technological advantages over Bitcoin.
Impact and Future of Kaspa Mining for Marathon Digital
Marathon’s decision to expand into Kaspa not only implies a diversification strategy, but also a commitment to higher profit margins.
Kaspa’s total mining capacity of 60 petahash is expected to be fully operational by Q3 2024, taking full advantage of current price and network difficulty conditions to achieve estimated profit margins of up to 95%.
This expansion not only strengthens Marathon’s position in the PoW market, but also positions the company to influence Kaspa market dynamics, potentially attracting more miners and users to the cryptocurrency.
With a 9% increase in KAS price in the last 24 hours, reaching approximately $0.175, Marathon‘s bet appears to be aligned with positive market trends.
Marathon Digital has made a strategic decision by diversifying its operations with Kaspa mining.
This movement not only seeks to reduce dependence on Bitcoin, but also capitalize on the technological and market advantages that Kaspa offers.
