Marathon Digital Mines $16M Worth Kaspa Tokens, Diversifies from Bitcoin Mining
Summary:
Marathon Digital, a Bitcoin mining giant, has expanded its operations by mining Kaspa (KAS) tokens worth $16 million since September 2023 to diversify its income. Kaspa's mining offered Marathon unprecedented profit margins due to its specific mining hardware. Despite the successful Kaspa mining operations, Marathon's focus remains primarily on Bitcoin mining. After its KAS mining announcement, the price of KAS tokens and the company's total holdings saw a slight increase.
Marathon Digital, a major player in Bitcoin (BTC) mining, has successfully mined Kaspa (KAS) tokens worth $16 million since last September. This move showcases the company's attempt to diversify away from Bitcoin. In a press release dated June 26, Marathon Digital stated that KAS mining enabled them to reap benefits from the superior profit margins achievable with Kaspa mining hardware, in some instances as high as 95%. Adam Swick, Marathon's Chief Growth Officer, shared that the mining of Kaspa provided the company a source of income different from Bitcoin, and given the high profit margins of Kaspa ASICs, Marathon was ideally placed to benefit.
According to Marathon Digital, the company has managed to mine 93 million KAS tokens since the initial set of Kaspa mining equipment was launched in September 2023. The KAS tokens' value has spiked by a significant 420% since then, while Bitcoin's value grew by 135%. Marathon has bought approximately 60 petahashes of KS3, KS5, and KS5 Pro ASICs exclusively for KAS mining. Half of these are functioning, with the rest scheduled to be operational by Q3.
However, Marathon's VP of Investor Relations, Robert Samuels, clarified that the company has no intentions of shifting its primary focus from Bitcoin to Kaspa. According to him, Kaspa mining will only represent 1% of the firm's total energy requirement when fully operational. Since last September, Marathon has mined a total of 9,761 Bitcoins - a worth of $594.9 million, hence portraying KAS mining as only a small element of the company's overall mining revenue.
Following Marathon's announcement, KAS tokens saw a 2.4% surge, hiking the token price and Marathon’s total KAS holdings to $0.172 and $16 million, respectively. Data from CoinGecko reveals Kaspa as the fifth-largest proof-of-work cryptocurrency with a total market cap of $4.1 billion. Currently, there are 24 billion KAS tokens in circulation, with a cap set at 28.7 billion. Kaspa, similar to Bitcoin, is a layer-1 protocol handling transactions using its native KAS tokens. Despite being faster than Bitcoin due to its unique BlockDAG architecture, it is not a direct competitor, with significantly fewer daily unique active addresses interacting with the Kaspa network.
Published At
6/27/2024 3:39:57 AM
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