Marathon Digital Holdings Announces Kaspa Mining Expansion
Marathon’s Strategic Move into Kaspa
Marathon Digital Holdings, Inc. has taken a significant step in diversifying its digital asset portfolio by initiating mining operations for Kaspa (KAS), a proof-of-work (PoW) digital asset. As of June 25, 2024, Kaspa ranks fifth in market capitalization among PoW digital assets, with a market cap of $3.9 billion and a daily trading volume of approximately $64.8 million.
Kaspa currently has a circulating supply of around 24 billion KAS and a block reward set at 103.83 KAS. Its terminal supply is capped at 28.7 billion KAS. Unlike Bitcoin, Kaspa operates using a BlockDAG (Directed Acyclic Graph) structure, which allows for the simultaneous production of multiple blocks, enhancing the network's transaction processing speed. The Kaspa network processes one block per second, increasing potential earnings for miners.
Marathon's Entry into Kaspa Mining
Marathon Digital Holdings began exploring the potential of Kaspa in May 2023 as part of its strategy to diversify revenue streams while leveraging its existing infrastructure and expertise in digital asset computing. After successfully deploying its first Kaspa ASICs in September 2023, Marathon has been scaling its operations.
The company has acquired approximately 60 petahash of KS3, KS5, and KS5 Pro ASICs. According to ASIC Miner Value, these ASICs can yield up to 95% profit margins under current network difficulty rates and KAS prices. As of now, 30 petahash of Marathon’s Kaspa ASICs are operational in their self-owned facilities in Texas, with the remaining petahash expected to be fully operational by the third quarter of 2024. As of June 25, 2024, Marathon has mined 93 million KAS, valued at approximately $15 million.
Leadership and Vision
Adam Swick, Marathon’s Chief Growth Officer, commented on this strategic expansion: “Mining Kaspa enables us to diversify revenue streams beyond Bitcoin, aligning with our core competencies in digital asset computing. Leveraging our infrastructure, strategic hardware partnerships, robust balance sheet, and team expertise, Marathon is uniquely positioned to capitalize on Kaspa’s higher margins available to early ASIC adopters. We remain committed to fostering innovation in proof-of-work ecosystems and expanding our leadership in digital asset computing.”
Marathon’s move into Kaspa mining reflects its dedication to innovation and strategic growth within the digital asset industry. By harnessing the power of advanced ASICs and leveraging its established infrastructure, Marathon aims to strengthen its position as a leader in digital asset computing while exploring new revenue opportunities.
Conclusion
Marathon Digital Holdings' venture into Kaspa mining marks a pivotal moment in the company's diversification strategy. With Kaspa's advanced BlockDAG technology and Marathon's robust mining capabilities, the future looks promising for both the company and its stakeholders. As the digital asset landscape continues to evolve, Marathon remains at the forefront, driving innovation and profitability in the proof-of-work ecosystem.
SOURCE: https://ir.mara.com/news-events/press-releases/detail/1360/marathon-digital-holdings-announces-kaspa-mining-operations