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After successfully deploying its first Kaspa ASICs in September 2023, Marathon began scaling its operations. So far, Marathon Digital has mined a total of 93 million KAS, valued at $15 million.
In a major announcement on Wednesday, June 26, Bitcoin miner Marathon Digital announced that it has started mining the proof-of-work Layer-2 protocol Kaspa (KAS) in order to diversify its mining revenue stream.
This is a major development as Bitcoin miners have come under significant stress following the Bitcoin halving event in April which cut the rewards to half. Thus, players like Marathon Digital have been finding additional sources of revenue with Kaspa being a right fit for the same.
Although the Kaspa protocol has a proof-of-work consensus mechanism, it employs GHOSTDAG protocol that allows miners to mine multiple blocks simultaneously. this functionality helps to make transactions faster and provides miners with higher block rewards in a given time frame.
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:
“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. Because of our existing infrastructure, our unique relationships with hardware manufacturers, our strong balance sheet, and the expertise of our team, Marathon was uniquely positioned to mine Kaspa and to capitalize on the higher margins that exist for those who can deploy Kaspa ASICs today.”
Marathon’s Move into Kaspa
Last year in May 2023, Marathon started evaluating Kaspa as a way to diversify revenue and put its current infrastructure to additional use.
After successfully deploying its first Kaspa ASICs in September 2023, Marathon began scaling its operations. The company has acquired approximately 60 petahash of KS3, KS5, and KS5 Pro ASICs, which ASIC Miner Value estimates can generate profits with margins of up to 95%, depending on the current network difficulty rate and price of KAS.
Currently, 30 petahash of Marathon’s Kaspa ASICs are operational in its self-owned and operated facilities in Texas, with the remaining expected to be fully energized by Q3 2024.
As of June 25, Marathon Digital Holdings has mined a total of 93 million KAS, valued at $15 million as of the current price. Soon after the announcement by Marathon, Kaspa (KAS) price rallied 13$ moving closer to 18 cents. Amid the current move, KAS is eyeing a breakout to new all-time highs.
