- Marathon is hoping to profit from the potential for larger margins associated with Kaspa mining, but an official emphasized that the company is not changing its primary emphasis from Bitcoin.
Bitcoin BTC tickers are down $60,666 due to intense mining. In an effort to diversify away from Bitcoin, Marathon Digital disclosed that it has been mining $16 million worth of Kaspa (KAS), a token created to solve the scalability issue with Bitcoin, since September.
Marathon Digital announced on June 26 that the change has enabled the company to take advantage of the higher profits that can be achieved with Kaspa mining machines—up to 95% in certain situations.
Chief Growth Officer of Marathon, Adam Swick, said, “We are able to create a stream of revenue that is diversified from Bitcoin by mining Kaspa.”
Since September 2023, when it deployed its first batch of Kaspa miners, Marathon has mined 93 million KAS tokens. Since then, KAS tokens have grown 420%, compared to a 135% growth in Bitcoin.
To mine Kaspa coins, Marathon has acquired about 60 petahashes of KS3, KS5, and KS5 Pro ASICs. The remaining portion will be placed later in the third quarter, with half of it already in use.
Mining for kaspa is not a pivot
Robert Samuels, Vice President of Investor Relations at Maraton, emphasized that the miner is not shifting its primary emphasis from Bitcoin, nevertheless.
When fully installed, Kaspa will account for just 1% of our energy capacity, according to Samuels’ June 26 X article.
Since September, Marathon has mined 9,761 Bitcoin, which is valued at $594.9 million. As a result, the company’s Kaspa mining operations have only contributed a minor portion of its overall mining income.
In spite of this, since Marathon revealed the information, the price of KAS tokens has increased by 2.4%, reaching $0.172 and $16 million, respectively, as well as Marathon’s total KAS stack.
With a $4.1 billion market capitalization, Kaspa is the fifth-largest proof-of-work cryptocurrency according to CoinGecko data. There are currently 24 billion KAS tokens in circulation, however there will only be a 28.7 billion total supply.
Similar to Bitcoin, Kaspa is a layer-1 protocol network that enables transfers with its native KAS token.
Nevertheless, Kaspa employs a BlockDAG design, which is built from a Direct Acyclic Graph, in which blocks are added to the network concurrently as opposed to sequentially.
But Kaspa is still a long way from challenging Bitcoin. With the Kaspa hovering around 20,000, Bitcoin presently sees between 700,000 and 1 million unique active addresses connect with the network per day.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
