Kaspa Price Jumps 13% As Bitcoin Mining Giant Marathon Digital Mines the Altcoin

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As a seasoned crypto investor with a background in blockchain technology and mining operations, I’ve been closely watching the developments surrounding Kaspa (KAS) with great interest. The recent announcement by Marathon Digital that they have started mining KAS is an exciting development for the cryptocurrency community, and as a KAS investor, I couldn’t be more thrilled.

In the past 24 hours, the native cryptocurrency of the Kaspa blockchain, KAS, has experienced a significant jump of approximately 13%. This surge was triggered by the announcement that Marathon Digital, a major player in Bitcoin mining, has begun mining KAS. At present, KAS is priced at $0.1792 and boasts a market capitalization of around $4.3 billion, moving it up into the list of the top 25 cryptocurrencies by market cap.

Additionally, the trading volume for Kaspa has significantly increased by over 130%, reaching approximately $141 million daily. At present, the price of Kaspa is hovering near its peak values and may continue to rise as it explores new pricing heights.

#Kaspa has clearly broken through the 18 cent barrier and is heading for 19 cents!
After that we can expect a new all-time high for $KAS!#crypto #pow $BTC
— KASPA Enthusiast 𐤊 (@KASPAEnthusiast) June 27, 2024

Marathon Digital Starts Mining Kaspa

On June 26, 2023, Marathon Digital, a major player in Bitcoin mining (NASDAQ: MARA), made an official declaration that they have initiated the process of mining the proof-of-work cryptocurrency, Kaspa.

As a researcher studying decentralized systems, I can tell you that Kaspa shares many similarities with Bitcoin. Both are open-source protocols operating on a decentralized network, and they both utilize the proof-of-work consensus mechanism. However, there is a key difference between these two: while Bitcoin produces one block every ten minutes, Kaspa leverages the BlockDAG (Directed Acyclic Graph) architecture to produce multiple blocks concurrently.

As a blockchain analyst, I’ve observed that the Kaspa network processes one block per second, making it an appealing choice for faster transactions. Moreover, Kaspa miners can earn more rewards in a given time frame, which could be the incentive attracting Marathon Digital to explore mining this cryptocurrency. With a current market capitalization ranking fifth among proof-of-work networks, Kaspa offers an alluring opportunity. Presently, the block reward for mining Kaspa stands at 103.83 KAS.

Diversifying Their Revenue Stream

In the previous year, Marathon Digital began considering Kaspa as an option to expand its income sources and initiated the deployment of Application-Specific Integrated Circuits (ASICs) for this purpose, starting from September 2023.

Marathon has procured approximately 60 petahashes of KS3, KS5, and KS5 Pro ASICs for Kaspa mining. Based on ASIC Miner Value’s estimates, these devices have the potential to yield profits with profit margins reaching up to 95%. However, this depends on the prevailing network difficulty rate and the price of KAS at the moment. Currently, Marathon operates 30 petahashes of Kaspa ASICs in their self-owned Texas facilities, with plans to have the remaining lot fully operational by Q3 2024.

As a researcher looking into Marathon’s mining operations, I have discovered that to date, the company has extracted a total of 93 million KAS, which currently hold a value of approximately $15 million. During a recent interview, Adam Swick, Marthon’s chief growth officer, shared insights on this progress.

Through the process of extracting Kaspa, we generate a financially varied income source that diverges from Bitcoin. This revenue stream stems directly from our specialized capabilities in digital asset processing. Due to our pre-existing infrastructure, exclusive partnerships with hardware manufacturers, robust financial standing, and proficient team, Marathon was distinctly prepared to mine Kaspa and reap the increased profits associated with deploying Kaspa ASICs at present.

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2024-06-27 08:51