Bitcoin Miner Marathon Digital Adds Kaspa (KAS) Mining to Diversify Revenue

Bitcoin miner Marathon Digital is diversifying its revenue by mining Kaspa, a proof-of-work (PoW) layer 1 blockchain network.

Bitcoin miner Marathon Digital (NASDAQ:MARA) is expanding its revenue stream by mining Kaspa, a proof-of-work (PoW) layer 1 blockchain network.

The miner became interested in Kaspa in May 2023 after an internal analysis revealed opportunities to diversify beyond Bitcoin mining. Marathon deployed its first Kaspa mining machine in September 2023.

Since then, Marathon has mined 93 million KAS tokens, which were valued at about $15 million as of June 25.

Following the announcement, KAS, the native asset of the Kaspa network, surged by 9% to a multi-week high of $0.18.

Why Kaspa?

According to Marathon, it chose Kaspa due to its fair launch, advanced technology, growing ecosystem and high profitability (enhanced $/kWh). Additionally, it noted that Kaspa integrates well with its existing data center sites, requiring minimal reconfiguration.

The company also highlighted that the Kaspa network processes one block per second. This rapid transaction speed could enable miners to earn more block rewards within a given timeframe.

This increased profitability opportunity enhances Marathon’s operational flexibility and allows it to establish digital asset data centers in regions where Bitcoin mining may not be viable.

“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,” said Adam Swick, Marathon’s chief growth officer.

Marathon eyes 16% of Kaspa’s global hash rate

Marathon is aiming to become a major player in the Kaspa mining industry. The miner disclosed the purchase of 60 petahashes of KS3, KS5 and KS5 Pro application-specific integrated circuits (ASICs) from Bitmain, which will boost its Kaspa generation.

The company noted that Kaspa ASICs are among the most profitable in the market. A KS5 Pro can generate approximately $79 daily profit, compared to $11 from a BTC-mining S21.

These Kaspa ASICs will be deployed in Marathon’s Texas facilities. While the project is not yet fully operational, it is expected to be fully energized by Q3 2024.

Once deployed, the machines will contribute about 16% of Kaspa’s global hash rate. While this is significant within Kaspa’s ecosystem, it represents only 1% of Marathon’s 1,100 MW data center portfolio.

Mentioned in this article

Oluwapelumi Adejumo

Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.

Liam 'Akiba' Wright

Also known as "Akiba," Liam is a reporter, editor and podcast producer at CryptoSlate. He believes that decentralized technology has the potential to make widespread positive change.

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