Marathon Digital Mines $16M in Kaspa Tokens to Diversify Bitcoin

Marathon Digital diversifies its crypto portfolio by mining $16 million worth of Kaspa tokens, aiming for higher margins.
Marathon Digital Mines $16M in Kaspa Tokens to Diversify Bitcoin

Marathon Digital, a leading Bitcoin mining company, has announced it mined $16 million worth of Kaspa (KAS) tokens since September 2023. This strategic move aims to diversify its revenue streams beyond Bitcoin. Marathon's Chief Growth Officer, Adam Swick, highlighted that the company could capitalize on higher margins offered by Kaspa mining machines, which can reach up to 95%.

Marathon has mined 93 million KAS tokens with their Kaspa miners, which were deployed in September. These tokens have seen a 420% price increase since then, compared to Bitcoin's 135% increase. Despite this diversification, Marathon's primary focus remains on Bitcoin, as emphasized by Robert Samuels, Vice President of Investor Relations. Kaspa mining will only account for 1% of the company's energy capacity.

Marathon purchased 60 petahashes of KS3, KS5, and KS5 Pro ASICs for Kaspa mining, with half already operational and the remainder set to be installed in the third quarter. Kaspa, a layer-1 protocol using a Direct Acyclic Graph-derived architecture called BlockDAG, offers faster block rates than Bitcoin, making it an attractive mining option. However, Kaspa's network activity still lags behind Bitcoin, with only 20,000 active addresses compared to Bitcoin's 700,000 to 1 million.

Disclaimer: Please note that the information provided in this article is based on the referenced research articles. It is essential to conduct further research and analysis before making any investment decisions. The cryptocurrency market is highly volatile, and investors should exercise caution and consult with financial professionals before engaging in cryptocurrency trading or investment activities.

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