As an analyst with a background in crypto mining and blockchain technology, I believe Marathon Digital’s decision to mine Kaspa is a strategic move that demonstrates the company’s foresight and adaptability in a rapidly changing market. The potential rewards from mining Kaspa, which boasts a significant market cap and trading volume, offer a promising revenue stream beyond Bitcoin.
As a researcher studying Marathon Digital Holdings, I’ve come across an exciting announcement. This global crypto-focused platform has shared that their Kaspa mining operations, which began last September, have generated roughly $15 million in value from the mined KAS coins as of now.
As an analyst, I would interpret this statement as follows: The company chose to include Kaspa in its mining portfolio as a means of expanding the scope and variety of its cryptocurrency mining activities.
Marathon Mining Kapsa
Since the initiation of Marathon Digital’s Kaspa mining activities, approximately 93 million KAS, equivalent to around $15 million, had been mined as of June 25.
The company highlighted 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 stands at 24 billion KAS, and users earn a reward of approximately 103.83 KAS for every block mined, with a terminal supply set at 28.7 billion.
Kaspa exhibits likenesses to Bitcoin in terms of decentralization and open-source nature. Nevertheless, it distinguishes itself through the utilization of a BlockDAG. In contrast to Bitcoin’s sequential processing of one block every 10 minutes, BlockDAG permits the concurrent handling of multiple blocks. This creates more chances for miners to secure rewards.
According to the press release, Marathon has purchased approximately 60 petahashes of KS3, KS5, and KS5 Pro ASICs from Kaspa. These ASICs have the potential to generate profit margins of 95% given the current network difficulty. Currently, Marathon operates 30 petahashes of Kaspa mining ASICs in Texas, with plans to add more in Q3 2024.
Diversification of Mining Activities
Marathon initiated investigations into Kaspa for diversification purposes as early as May 2023. Yet, it wasn’t until September that Kaspa ASICs were first deployed by the global computing leader and expansion efforts commenced.
As a data analyst, I’d rephrase Adam Swick’s statement about Kaspa mining from Marathon Digital as follows: In my capacity as the Chief Growth Officer at Marathon Digital, I spoke about our involvement in the Kaspa mining process.
Through the process of extracting Kaspa, we generate a income source that deviates from Bitcoin and is inherently linked to our key abilities in digital asset processing.
As a researcher studying Marathon’s mining operations, I can share that according to the company’s Chief Growth Officer, Marathon is advantageously situated to mine Kaspa due to our “unique industry connections with hardware manufacturers, a robust financial base, and the proficiency of our team.” Furthermore, this digital executive reaffirms Marathon’s dedication to fostering innovation within Proof-of-Work (PoW) ecosystems and solidifying our leadership role in the mining sector.
As a crypto investor who experienced the significant price drop of Bitcoin starting from 2022, I can tell you that many miners found themselves in a challenging position. To mitigate the revenue losses, some miners explored alternative uses for their infrastructure. They began providing resources for AI and computing projects. Others, however, decided to mine different cryptocurrencies instead.
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2024-06-30 21:36