Marathon Digital (MARA), a prominent Bitcoin miner, has diversified its operations by venturing into mining the layer 1 protocol Kaspa (KAS), alongside Bitcoin, to broaden its revenue streams.
Kaspa utilizes the GHOSTDAG proof-of-work (PoW) consensus mechanism, allowing for simultaneous production of multiple blocks, which accelerates transaction speeds and increases block rewards—a feature highlighted by Marathon to bolster its mining revenue diversification strategy.
Adam Swick, Marathon’s chief growth officer, emphasized the strategic move: “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.”
Since September last year, Marathon has been actively mining Kaspa, marking its expansion beyond Bitcoin mining. The company has deployed significant computational power, acquiring 60 petahash worth of mining machines capable of achieving profit margins as high as 95%.
Currently, Marathon operates 30 petahash of mining rigs across its Texas facilities, with plans to bring the remaining capacity online by the third quarter. Notably, the company has already mined 93 million KAS tokens, valued at approximately $15 million.
In response to evolving market dynamics and heightened competition post-crypto winter and halving events, Bitcoin miners like Marathon are increasingly diversifying their revenue streams. Some are leveraging existing infrastructure for artificial intelligence (AI) and other computing applications, while others, like Marathon, are exploring additional layers of Bitcoin for supplementary income.
This strategic pivot underscores Marathon Digital’s proactive approach to navigating the competitive landscape of cryptocurrency mining, positioning itself for sustained growth and profitability amidst industry shifts.
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