Marathon Digital Mines $16M in Kaspa, Strengthening Revenue Streams Beyond Bitcoin

• Marathon Digital’s Kaspa mining diversification aims to leverage high margins up to 95% for increased profitability.
• Despite the Kaspa venture, Marathon remains committed to Bitcoin, with Kaspa representing only 1% of its energy capacity.
• Kaspa mining generated $16M since September, a small fraction compared to $594.9M from Bitcoin, yet a strategic revenue stream.

Marathon Digital has announced a significant diversification move. Since September, the company has mined $16 million worth of Kaspa (KAS), a token designed to enhance Bitcoin’s scalability. This strategic shift aims to capitalize on the higher margins possible with Kaspa mining.

Marathon Digital’s decision to mine Kaspa is driven by the potential for increased profitability. The firm has noted that Kaspa mining machines can offer margins as high as 95%. Adam Swick, Marathon’s chief growth officer, emphasized the benefits of this diversification stating that by mining Kaspa, they are able to create a stream of revenue that is diversified from Bitcoin. This approach leverages Marathon’s unique position to deploy Kaspa ASICs effectively.

The company has invested in approximately 60 petahashes of KS3, KS5, and KS5 Pro ASICs for Kaspa mining. Currently, half of this capacity is operational, with the remainder expected to come online in the third quarter. This move is part of a broader strategy to enhance revenue streams and optimize operational efficiency.

Despite this new venture, Marathon remains firmly committed to Bitcoin mining. Robert Samuels, the company’s vice president of investor relations, made this clear in a recent statement that Kaspa will represent just 1% of their energy capacity once fully deployed, dismissing any notion of a pivot away from Bitcoin. This reassures investors and stakeholders of the company’s primary focus.

Marathon Digital has mined 9,761 Bitcoin since September, valued at $594.9 million. In comparison, the $16 million generated from Kaspa mining is a small fraction of its total revenue. This highlights that while the Kaspa venture is significant, it remains a supplementary revenue stream.

The decision to mine Kaspa comes amid a period of lower Bitcoin production for Marathon. As highlighted by Julio Moreno, head of research CryptoQuant_com, the company sold 1,000 Bitcoin from its reserves earlier in June, reflecting strategic adjustments to its portfolio. By diversifying into Kaspa, Marathon aims to mitigate some of the impacts of fluctuating Bitcoin production levels.

The current live price of Kaspa is $0.175948, with a 24-hour trading volume of $154,331,662. Kaspa has seen a 10.10% increase in value over the last 24 hours, indicating strong market interest and potential for future growth.