According to CryptoPotato, Marathon Digital Holdings, a global crypto-focused platform, has reported that its Kaspa mining operations have generated approximately $15 million in KAS since its inception in September. The decision to mine Kaspa was part of the company's strategy to diversify its mining operations.
Since the start of their Kaspa mining operations, Marathon Digital has mined about 93 million KAS, valued at about $15 million as of June 25. The company noted that Kaspa is currently the 5th largest Proof-of-Work (PoW) crypto asset, with a market cap of $3.9 billion and trading volumes of $64.8 million. The blockchain’s circulating supply is at 24 billion KAS, and miners earn a reward of approximately 103.83 KAS for every block mined, with a terminal supply set at 28.7 billion.
Kaspa shares similarities with Bitcoin in terms of decentralization and open sourcing. However, it differs by employing a BlockDAG, which allows for the simultaneous processing of multiple blocks, unlike Bitcoin’s single block every 10 minutes. This provides miners with more opportunities to earn rewards.
Marathon purchased 60 petahash of KS3, KS5, and KS5 Pro ASICs, each capable of generating profit margins of 95% at the existing network difficulty. The company already runs 30 petahash of Kaspa mining ASICs in Texas, and more will be coming in Q3 2024.
Marathon began exploring Kaspa in May 2023 to diversify their revenue. However, it was not until September that the company deployed the first lot of Kaspa ASICs and began expanding. Adam Swick, the Chief growth officer at Marathon Digital, said: 'By mining Kaspa, we are able to create a stream of revenue that is diversified from Bitcoin, and that is directly tied to our core competencies in digital asset compute.'
Swick also stated that Marathon is well positioned to mine Kaspa due to its 'unique relationships with hardware manufacturers, our strong balance sheet, and the expertise of our team.' The Marathon digital executive pledges commitment to supporting innovation in PoW ecosystems and expanding its position as a leader in the mining business.
After the massive price decline of Bitcoin starting in 2022, miners began looking for ways to diversify their revenue. Some chose to use their infrastructure for AI and computing needs, while others opted to mine other cryptos.