Marathon Digital Mines $16M in Kaspa, Maintains 99% Focus on Bitcoin

As a researcher with extensive experience in the digital asset market, I find Marathon Digital Holdings’ recent foray into mining Kaspa (KAS) tokens an intriguing development. The company’s ability to mine $16 million worth of KAS since September 2023 is impressive, especially considering the potential profit margins associated with this altcoin.


As a crypto investor, I’d express it this way: “Since September 2023, Marathon Digital Holdings, the Bitcoin mining company I follow, has successfully mined and obtained $16 million worth of Kaspa (KAS) tokens.”

In today’s announcement, we reveal our ongoing efforts to extract value from Kaspa as part of our strategic approach to energy solutions and technological advancements in digital asset computations. For further details, please refer to the complete press release.

— MARA (@MarathonDH) June 26, 2024

In a press release on June 26, Adam Swick, Marathon’s Chief Growth Officer, detailed the approach that led to achieving this significant accomplishment.

Through the process of extracting Kaspa, we generate a income source that is distinct from Bitcoin and is linked closely to our key expertise in digital asset computing.

I’ve analyzed the company’s investment strategy, and they have allocated around 60 petahashes of computing power towards Kaspa mining, using a mix of KS3, KS5, and KS5 Pro ASICs. At present, half of these devices are up and running, while the remaining half is scheduled for installation in the third quarter.

As a researcher, I would express it this way: By transitioning to Kaspa mining, Marathon is capitalizing on the substantial profitability of KAS, which has peaked at approximately 95% in certain instances.

Marathon, despite achieving significant success with its new initiative, wants to make it clear that this does not signify a departure from its main commitment to Bitcoin mining. Robert Samuels, Vice President of Investor Relations, explained, “Kaspa will only utilize 1% of our total energy capacity when fully operational,” emphasizing that Marathon’s primary focus on Bitcoin mining remains unchanged.

As an analyst, I’ve observed that since Marathon initiated Kaspa mining, the value of KAS tokens has skyrocketed by an astounding 420%. This growth surpasses Bitcoin’s more modest 135% increase during the same timeframe. At present, each KAS token is being traded at a price of $0.1819 on the market, representing a substantial 13% rise over the past day.

Marathon Digital Mines $16M in Kaspa, Maintains 99% Focus on Bitcoin

The company has obtained a total of 93 million KAS tokens through mining and generated 9,761 Bitcoins, equivalent to $594.9 million in value, during this period.

As a researcher studying alternative blockchain solutions, I’ve come across Kaspa, which aims to tackle Bitcoin’s scalability challenges through its BlockDAG (Directed Acyclic Graph) architecture. This design enables swifter transaction processing. Yet, despite this advantage, Kaspa trails noticeably behind Bitcoin in terms of network activity and acceptance within the community.

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2024-06-27 05:11