Bitcoin (BTC) mining giant Marathon Digital announced that it has generated $16 million worth of revenue since September through mining Kaspa (KAS), a token that aims to solve Bitcoin's scalability problem.

Marathon Digital stated that it provides the opportunity to "leverage" the higher margins possible with Kaspa mining machines. “By mining Kaspa, we are able to create a diversified revenue stream from Bitcoin,” said Adam Swick, the company's chief growth officer.

Marathon has mined 93 million KAS tokens since deploying the first Kaspa miners in September 2023. The value of KAS tokens increased by 420% during this time, while the value of Bitcoin increased by 135%.

However, Marathon's Vice President of Investor Relations Robert Samuels emphasized that the company will not change its main focus from Bitcoin. “When Kaspa reaches full capacity, it will represent only 1% of our energy capacity,” Samuels said.

According to CoinGecko data, Kaspa is the fifth largest proof-of-work cryptocurrency with a market value of $4.1 billion. 24 billion KAS tokens are in circulation, and the total supply will be limited to 28.7 billion.

Kaspa, like Bitcoin, is a layer-1 protocol that facilitates transfers using its native token, KAS. However, Kaspa implements a Direct Acyclic Graph derivative architecture – “BlockDAG” – which allows blocks to be added to the network simultaneously rather than linearly.

This makes Bitcoin take about 10 minutes to create a block, while Kaspa has a rate of about 1 block per second. However, Kaspa is still far from being a competitor to Bitcoin.

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