About Marathon Digital
Bitcoin (BTC) miner Marathon Digital (MARA) has expanded its operations by venturing into multi-coin crypto mining. The company has recently started mining the layer 1 protocol Kaspa (KAS) to diversify its revenue streams.
Kaspa Protocol and Benefits
The Kaspa protocol utilizes a proof-of-work (PoW) consensus mechanism known as GHOSTDAG protocol. Unlike Bitcoin, Kaspa allows multiple blocks to be produced simultaneously, facilitating faster transactions and increasing block rewards for miners.
Marathon’s Perspective
Adam Swick, Marathon’s chief growth officer, highlighted the strategic move stating, “By mining Kaspa, we are able to create a stream of revenue diversified from Bitcoin, leveraging our expertise in digital asset computation.”
Market Performance
Notably, the Kaspa token has seen an impressive price surge of nearly 50% this year, outperforming Bitcoin’s 44% increase. The broader CoinDesk 20 index also reflects a positive trend with a growth of nearly 16% in the same period.
Operational Details
Marathon initiated its Kaspa mining operations in September last year with the deployment of its first mining computer. The company has acquired 60 petahash of mining machines capable of achieving profit margins up to 95%. Presently, 30 mining rigs are operational in Marathon’s Texas sites, with plans to bring the remaining online by the third quarter.
Financial Results
Marathon has mined approximately 93 million KAS tokens, equivalent to a value of around $15 million. This move underscores the company’s proactive approach to adapt to the evolving cryptocurrency landscape and maximize revenue opportunities.
Industry Trends
The cryptocurrency mining sector has witnessed increased competition post the recent halving, prompting miners to explore diversified revenue streams. Marathon’s foray into Kaspa mining exemplifies the industry’s shift towards leveraging existing infrastructure for enhanced profitability.