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- Marathon Digital Holdings (Marathon) has revealed that it is mining Kaspa (KAS) to diversify its mining operations and spread risk.
- With around 93 million tokens mined since September, the company has earned approximately $15 million.
Marathon Dogotal Holdings, a publicly traded mining company, has revealed it has begun mining Kaspa (KAS) tokens. Kaspa shares similarities with Bitcoin in that it is a Proof of Work (PoW) consensus as Bitcoin, but unlike Bitcoin, it uses a Directed Acyclic Graph (BlockDAG) approach.
The Nasdaq-listed mining company revealed that it became interested in mining KAS in May 2023. This was about a year after the launch of the token, which is now ranked 27th by market cap.
At the time of writing, KAS is exchanging hands for $0.1796 after a 7% surge. This sees the token extend its weekly gains by 24% as investors celebrate the recognition from Marathon mining confirmation.
As of June 25, Marathon mined 3 million tokens, earning approximately $15 million. This success has spurred greater interest. The company has recently purchased approximately 60 petahashes of KS3, KS5, and KS5 Pro ASIC machines, of which 30 petahashes are currently operational. All machines are expected to be operational in Q3 2024.
Adam Swick, chief growth officer at Marathon, revealed that these plans were vital to ensuring diversification away from Bitcoin. He stated:
Mining Kaspa allows us to create a diversified revenue stream from Bitcoin and ties directly into our core competency of computing digital assets,
Bitcoin mining has become increasingly challenging amidst poor performance. Based on the company’s already built infrastructure, it is suited to mine KAS. “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,” Swick added.
However, despite looking beyond Bitcoin, the company remains committed to mining the largest cryptocurrency in the world. The company highlighted plans to drive greener Bitcoin mining ventures earlier this year. At the time, Swick emphasized the importance of adaptability in the volatile crypto market, shedding light on the company’s strategies for sustainability and efficiency.
The crypto mining industry has come under threat recently, with the business model under economic and regulatory scrutiny. As Crypto News Flash reported, US investment firm Kerrisdale has declared outright war against Bitcoin miners, offering a scathing review of the business model of the RIOT blockchain. Another publicly traded company operating in the U.S., the investment firm, stated that the mining industry comprises “snake oil salesmen,” pointing out its financial challenge and negative environmental impact.
Since undergoing the fourth successful Bitcoin halving earlier this month, the digital asset has slashed its mining reward from 6.25 to 3.125 BTC. This halving has historically been followed by a price rally to a new all-time high in the months following.
At the time of writing, BTC is exchanging for $61,470 after a 1.1% surge in the last 24 hours.
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