Marathon, a Bitcoin miner, has ventured into mining Kaspa (KAS) tokens since September 2023 and has managed to mine 9 million KAS tokens valued at around $15 million. The company has brought 30 petahash worth of machines online to mine Kaspa, with another 30 set to start by the third quarter. By diversifying its revenue streams, Marathon has now become a multi-coin crypto miner, aiming to capitalize on the rising value of Kaspa tokens.
Kaspa utilizes a proof-of-work (PoW) consensus mechanism known as the GHOSTDAG protocol, which allows multiple blocks to be produced simultaneously. This results in faster transactions and increased block rewards for miners. Marathon’s Chief Growth Officer, Adam Swick, highlighted that mining Kaspa enables the company to generate revenue separate from Bitcoin, leveraging their expertise in digital asset computing. The move signifies Marathon’s strategy to adapt to the evolving crypto landscape and seize the opportunities presented by alternative cryptocurrencies.
The price of Kaspa tokens has surged nearly 50% this year, outpacing Bitcoin’s 44% increase and the broader CoinDesk 20 index’s 16% rise. Marathon’s decision to mine Kaspa was driven by the potential for lucrative profits, with the company revealing that the mining machines it has purchased can achieve profit margins of up to 95%. With 30 mining rigs already operational in Texas, Marathon is on track to have all 60 petahash of machines online by the third quarter, aiming to further boost its revenue from mining activities.
As the crypto mining industry becomes increasingly competitive post-crypto winter and halving events, diversification has become a key strategy for miners to sustain profitability. Marathon’s foray into Kaspa mining reflects a broader trend among miners seeking to explore alternative revenue streams and capitalize on emerging cryptocurrencies. By monetizing other layers of Bitcoin and embracing new technologies like AI, miners are adapting to the evolving dynamics of the crypto market and positioning themselves for long-term success.
Marathon’s shift towards mining Kaspa aligns with its strategic goals of expanding revenue sources and leveraging its core competencies in digital asset computing. The company’s success in mining 9 million KAS tokens valued at $15 million underscores the potential for profitability and growth in the burgeoning crypto industry. With plans to scale up its mining operations and capture further opportunities in the market, Marathon is poised to continue its evolution as a leading player in the crypto mining landscape.
