Marathon Digital has maintained its primary concentration on Bitcoin while diversifying its mining operations by incorporating $16 million of Kaspa (KAS) into its portfolio.
Marathon Digital has expanded its mining operations by incorporating $16 million worth of Kaspa (KAS) into its portfolio. Additionally, the United States government transferred 3,940 Bitcoin to a Coinbase Prime wallet in response to a substantial seizure. In the interim, spot Bitcoin exchange-traded funds (ETFs) based in the United States experienced a reversal in their net outflows, as they received $31 million in inflows on June 25.
Marathon Digital, a prominent participant in the Bitcoin mining industry, has disclosed that it has mined $16 million in Kaspa (KAS) since September. The objective of this diversification initiative is to address the scalability issues of Bitcoin and capitalize on the higher profit margins associated with Kaspa mining.
Marathon Digital disclosed its diversification strategy on June 26, emphasizing the organization’s dedication to investigating alternative mining prospects. Adam Swick, Marathon’s Chief Growth Officer, stated, “We are able to generate a revenue stream that is distinct from Bitcoin by mining Kaspa.” Swick underscored the potential for increased margins with Kaspa mining machinery, which have the capacity to achieve up to 95% in certain instances.
Marathon Digital’s decision to mine Kaspa is not a complete departure from Bitcoin, but rather a strategic addition to its mining portfolio. Since the deployment of its initial run of Kaspa miners in September 2023, the organization has mined 93 million KAS tokens. KAS tokens experienced a 420% increase during this period, in contrast to Bitcoin’s 135% increase.
In order to facilitate its Kaspa mining operations, Marathon Digital has acquired approximately 60 petahashes of KS3, KS5, and KS5 Pro ASICs. Currently, half of this equipment is operational, with the remaining half scheduled for installation by the third quarter.
Marathon Digital’s principal concentration remains Bitcoin, despite the substantial investment in Kaspa mining. Marathon’s Vice President of Investor Relations, Robert Samuels, clarified this position in a social media post on June 26. “Kaspa will account for only 1% of our energy capacity when completely deployed,” Samuels observed. “To assert that we are “pivoting” is both inaccurate and irresponsible.”
The value of 9,761 Bitcoins mined by Marathon since September is $594.9 million. This figure is in stark contrast to the revenue generated from Kaspa mining, suggesting that Bitcoin remains the foundation of Marathon’s operations.
KAS tokens experienced a 2.4% increase in value subsequent to Marathon’s announcement, resulting in a price of $0.172 and a total value of $16 million for Marathon’s KAS holdings. Kaspa, with a market capitalization of $4.1 billion, is the fifth largest proof-of-work cryptocurrency, as per CoinGecko. Kaspa is gaining momentum in the cryptocurrency market, with a finite supply of 28.7 billion and 24 billion KAS tokens in circulation.
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