Bitcoin
miner
Marathon
Digital
is
diversifying
its
revenue
by
mining
Kaspa,
a
proof-of-work
(PoW)
layer
1
blockchain
network.
The
miner
said
it
became
interested
in
Kaspa
in
May
2023
when
its
internal
analysis
revealed
diversifying
opportunities
beyond
Bitcoin
mining.
The
company
deployed
its
first
Kaspa
mining
machine
in
September
2023.
Since
then,
Marathon
Digital
has
mined
93
million
KAS
tokens,
worth
about
$15
million
as
of
June
25.
Following
this
announcement,
KAS,
the
native
asset
of
the
Kaspa
network,
surged
by
9%
to
a
multi-week
high
of
$0.18.
Why
Kaspa?
Marathon
Digital
said
it
selected
Kaspa
due
to
its
fair
launch,
advanced
technology,
growing
ecosystem,
and
high
profitability
(enhanced
$/kWh).
Additionally,
it
noted
that
Kaspa
integrates
well
with
its
existing
data
center
sites,
requiring
minimal
reconfiguration.
The
company
further
highlighted
that
the
Kaspa
network
processes
one
block
per
second.
This
rapid
transaction
speed
potentially
allows
miners
to
earn
more
block
rewards
within
a
given
timeframe.
This
increased
profitability
opportunity
enhances
its
operational
flexibility
and
allows
it
to
establish
digital
asset
data
centers
in
locations
where
Bitcoin
mining
may
not
be
viable.
Adam
Swick,
Marathon’s
chief
growth
officer,
added:
“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.”
Marathon
eyes
16%
of
Kaspa’s
global
hash
rate
Marathon
Digital
aims
to
dominate
Kaspa’s
mining
industry.
The
miner
revealed
the
purchase
of
60
petahashes
of
KS3,
KS5,
and
KS5
Pro
ASICs
from
Bitmain,
which
will
boost
its
Kaspa
generation.
The
company
highlighted
that
Kaspa
ASICs
are
among
the
most
profitable
on
the
market.
A
KS5
Pro
can
generate
approximately
$79
daily
profit,
compared
to
$11
from
a
BTC-mining
S21.
These
Kaspa
ASICs
will
be
deployed
in
Marathon’s
Texas
facilities.
While
the
project
is
not
yet
fully
operational,
it
is
expected
to
be
fully
energized
by
Q3
2024.
Once
deployed,
the
machines
will
account
for
about
16%
of
Kaspa’s
global
hash
rate.
Although
this
is
significant
within
Kaspa’s
ecosystem,
it
represents
only
1%
of
Marathon’s
1,100
MW
data
center
portfolio.
Mentioned
in
this
article
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Author: Oluwapelumi Adejumo
