This Crypto Exploded After Bitcoin Miner Marathon Digital Said It Was Mining $16M Worth Of It To Diversify Away From King Crypto

Kaspa (CRYPTO: KAS) witnessed a significant surge on Wednesday, emerging as the market's biggest gainer following an announcement from Marathon Digital Holdings Inc. (NASDAQ: MARA) The Bitcoin mining giant announced that it is mining Kaspa, a PoW (proof of work) cryptocurrency, as part of an attempt to diversify its broader revenue streams outside of Bitcoin.

In the last 24 hours, the price of Kaspa has skyrocketed 11 percent, approaching the all-time high it reached in February. This increase brought Kaspa's market value to over 4 billion dollars. Additionally, the coin recorded a dramatic 92 percent increase in 24-hour trading volumes, reaching $125 million, indicating strong buying pressure and significant market interest.

The increase in Kaspa prices came as Marathon Digital announced that it had begun mining the cryptocurrency accelerated. This move is a strategic change for Marathon, which focuses primarily on Bitcoin mining. According to the company, it began exploring the potential of Kaspa mining in May last year and commissioned the first Kaspa-specific ASICs (Application Specific Integrated Circuits) in September 2023. Marathon reported that it had mined 93 million KAS tokens, worth approximately $16.74 million, as of June 25. current market prices.

Marathon's announcement comes at a time when Bitcoin miners are facing challenging conditions after the halving event in April, which halved block rewards. This reduction in rewards has put financial pressure on miners. Research analyst Julio Moreno noted that Marathon has endured lower Bitcoin production since December and disposed of approximately 1,000 Bitcoins in early June to generate cash.

Marathon's decision to mine Kaspa was driven by diversification of its operations and reliance on Bitcoin. It is a strategic move to alleviate these pressures by reducing This diversification not only provides an additional revenue stream, but also demonstrates confidence in Kaspa's potential as a valuable cryptocurrency.

As a result of this announcement, market sentiment around Kaspa has improved significantly in the coin's price and trading volume. According to Benzinga Pro data, Kaspa was trading at $0.1819 at press time. Meanwhile, Marathon Digital shares closed up a small 0.62 percent at $19.37 at the end of Wednesday's trading session.

Marathon's strategic pivot to Kaspa comes as companies look to balance their portfolios and explore new opportunities outside of Bitcoin, cryptocurrency mining It shows that the landscape is changing. This move is notable, especially given the current market conditions and the financial challenges created by the recent Bitcoin halving event.

In conclusion, Marathon Digital's entry into Kaspa mining is a significant development in the cryptocurrency market. By diversifying its mining operations, Marathon not only increases revenue potential but also supports Kaspa's growth and adoption. This strategic decision is likely to have a lasting impact on both Marathon's financial health and Kaspa's market performance and will attract the attention of investors and market watchers.

For more details, see the original article "This Crypto Exploded After Bitcoin Miner" at Benzinga.com You can reach it under the title "Marathon Digital Said It Was Mining $16M Worth Of It To Diversify Away From King Crypto".

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