Bitcoin Miner Marathon Digital Diversifies Revenue Stream with Kaspa Mining

As a seasoned crypto investor with a background in mining operations, I find Marathon Digital’s move into mining Kaspa (KAS) an intriguing development. Bitcoin miners have been grappling with the aftermath of the Bitcoin halving event, which slashed rewards in half. Thus, diversifying revenue streams has become a necessity for players like Marathon Digital.

On June 26, 2023, Marathon Digital, a leading Bitcoin miner, unveiled that they have initiated the process of mining the proof-of-work Layer-2 protocol, Kaspa (KAS). This move aims to broaden their mining income sources.

As a crypto investor, I’m excited about the latest development in the Bitcoin mining industry. After the Bitcoin halving event in April, miners have faced increased pressure due to reduced rewards. In response, companies like Marathon Digital have been exploring new revenue streams. For me, Kaspa is an attractive option as it aligns well with this strategy.

Despite utilizing a proof-of-work consensus mechanism in the Kaspa protocol, it incorporates the GHOSTDAG protocol to enable miners to work on multiple blocks concurrently. This feature expedites transaction processing and grants miners enhanced rewards for completed blocks within a specified duration.

Thus, Kaspa is much faster than Bitcoin’s linear mining process and allows the mining of only one block every ten minutes. Currently, Kaspa, processes one block every said, said Marathon Digital. The current block reward of Kaspa stands at 103.83 KAS. Speaking on the development, Adam Swick, Marathon’s chief growth officer said:

As a crypto investor, I can express it this way: “Mining Kaspa presents an opportunity for me to generate a revenue stream that is distinct from Bitcoin. This revenue source is directly linked to my core capabilities in digital asset compute. With our existing infrastructure, special connections with hardware manufacturers, robust financial position, and experienced team, Marathon was perfectly placed to mine Kaspa and maximize the profit margins associated with deploying Kaspa ASICs at this time.”

Marathon’s Move into Kaspa

In the role of a financial analyst, I would express it this way: Last year in May 2023, I initiated an evaluation of Kaspa as a potential avenue for Marathon to expand its revenue streams and optimally utilize our existing infrastructure.

Marathon saw great success in September 2023 with its initial deployment of Kaspa ASICs. Following this achievement, the company expanded its business by acquiring around 60 petahashes worth of KS3, KS5, and KS5 Pro ASICs. According to ASIC Miner Value’s assessment, these specific ASICs have the potential to yield profits with impressive margins reaching up to 95%. However, the actual profitability depends on the current network difficulty rate and the market price of KAS.

At present, Marathon has activated 30 petahashes of its Kaspa ASICs in their self-managed Texas data centers. The remainder is scheduled to be fully powered up by third quarter of 2024.

Starting from June 25th, Marathon Digital Holdings has successfully mined a total of 93 million Kaspa (KAS) tokens. These tokens are currently valued at approximately $15 million based on the current market price. Following this announcement by Marathon, there was a significant surge in the value of KAS, with its price increasing by around 13 dollars and approaching nearly 18 cents. At present, there is a strong possibility that Kaspa could shatter its previous record-high prices.

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2024-06-27 11:06