Marathon Digital’s entry into Kaspa mining spurred a surge in Kaspa (KAS), marking it among the week’s top-performing cryptocurrencies.
Marathon Digital Holdings, a global crypto-focused platform, announced that its mining operations for Kaspa have yielded approximately $15 million worth of KAS since they commenced last September.
The company states that the decision to mine Kaspa was part of its strategy to diversify its mining operations.
Marathon Mining Kapsa
In the statement released on Wednesday, Marathon Digital mentioned that since the dawn of their Kaspa mining operations, they have already mined about 93 million KAS worth about $15 million by June 25.
The company highlighted that Kaspa is currently the 5th largest Proof-of-Work (PoW) crypto asset, with a market cap of $3.9 billion and trading volumes of $64.8 million. The blockchain’s circulating supply stands at 24 billion KAS, and users earn a reward of approximately 103.83 KAS for every block mined, with a terminal supply set at 28.7 billion.
Kaspa shares similarities with Bitcoin in terms of decentralization and open sourcing. However, it differs by employing a BlockDAG, which allows for the simultaneous processing of multiple blocks, unlike Bitcoin’s single block every 10 minutes. This provides miners with more opportunities to earn rewards.
As per the press statement, Marathon bought “60 petahash of KS3, KS5, and KS5 Pro ASICs, each capable of generating profit margins of 95% at the existing network difficulty. Marathon already runs 30 petahash of Kaspa mining ASICs in Texas, and more will be coming in Q3 2024.
Diversification of Mining Activities
In the statement, Marathon mentioned that they began looking into Kaspa in May 2023 to diversify their revenue. However, it was not until September that the global compute giant deployed the first lot of Kaspa ASICs and began expanding.
When speaking about the Kaspa mining, Adam Swick, the Chief growth officer at Marathon Digital, said:
“By 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.”
As per Marathon’s CGO, Marathon is well positioned to mine Kaspa owing to its “unique relationships with hardware manufacturers, our strong balance sheet, and the expertise of our team.” The Marathon digital executive pledges commitment to supporting innovation in PoW ecosystems and expanding its position as a leader in the mining business.
After the massive price decline of Bitcoin starting in 2022, miners began looking for ways to diversify their revenue. Some chose to use their infrastructure for AI and computing needs, while others opted to mine other cryptos.
Source: www.cryptopotato.com