Marathon Bitcoin Miner Generates $15M in Kaspa Tokens to Expand Revenue Streams
Marathon Digital, a Bitcoin miner, has ventured into the world of multi-coin crypto mining by delving into Kaspa, a layer 1 protocol, to expand its mining revenue. Since September 2023, Marathon has successfully mined 9 million KAS tokens, equivalent to approximately $15 million.
In a bid to diversify its mining operations, Marathon has brought 30 petahash worth of machines online to mine Kaspa, with an additional 30 set to commence operations by the third quarter. This strategic move aligns with Marathon’s goal to broaden its revenue streams beyond Bitcoin mining.
Kaspa utilizes a proof-of-work (PoW) consensus mechanism known as the GHOSTDAG protocol, which sets it apart from Bitcoin by enabling the simultaneous production of multiple blocks. This innovative approach not only accelerates transaction speeds but also offers enhanced block rewards for miners, as highlighted in Marathon’s official statement.
Adam Swick, Marathon’s chief growth officer, emphasized the significance of this diversification strategy, stating, “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.”
The value of the Kaspa token has surged nearly 50% this year, outpacing Bitcoin’s 44% increase. Similarly, the CoinDesk 20 index has seen a rise of almost 16% during the same period, reflecting the positive momentum in the crypto market.
Marathon’s foray into Kaspa mining began last year, with the company swiftly ramping up its mining capabilities. With 60 petahash worth of mining machines in its arsenal, Marathon anticipates profit margins of up to 95%. Presently, 30 petahash worth of mining rigs are operational at Marathon’s Texas sites, with the remaining set to be online by the third quarter. The company has successfully mined 93 million KAS tokens, translating to a value of around $15 million.
In response to the evolving landscape of Bitcoin mining, miners have been exploring avenues to diversify their revenue streams post the crypto winter and the impact of recent halving events, which have intensified industry competition. Some miners, including Marathon, have opted to monetize alternative layers of Bitcoin to bolster their earnings, showcasing the industry’s adaptability and resilience in navigating market dynamics.
