Marathon Digital Holdings Announces Kaspa Mining Operations

Rhea-AI Summary

Marathon Digital Holdings (NASDAQ:MARA) has announced its involvement in mining Kaspa (KAS), a proof-of-work digital asset. As of June 25, 2024, Marathon has mined 93 million KAS, valued at approximately $15 million. Kaspa is the fifth largest PoW digital asset by market cap, boasting a $3.9 billion market cap and $64.8 million in daily trading volume. The Kaspa network processes one block every second, enabling faster transactions and potentially higher block rewards. Marathon has acquired about 60 petahash of KS3, KS5, and KS5 Pro ASICs, some of which are already operational in Texas, with the rest expected to be fully energized by Q3 2024.

Positive

• Marathon has mined 93 million KAS, valued at approximately $15 million.
• Kaspa mining can diversify Marathon’s revenue stream from Bitcoin.
• Marathon has acquired around 60 petahash of high-performance ASICs, promising up to 95% profit margins.

Negative

• Risks are associated with investing in Marathon's securities, highlighting the high-risk nature of digital asset investments.

Financial Analyst

Marathon Digital Holdings' engagement in mining Kaspa introduces a meaningful diversification strategy for its revenue streams. 93 million KAS mined, valued at $15 million, is significant given the current market conditions. By leveraging their existing infrastructure and expertise, they have managed to achieve this milestone efficiently. With approximately 60 petahash of Kaspa ASICs purchased, half of which are operational, the potential for increased revenue in the upcoming quarters is palpable.

From a short-term perspective, the operational performance of the additional 30 petahash expected to be energized in Q3 2024 will be pivotal. Investors should closely monitor the block rewards and the overall profitability of these ASICs as they come online. Furthermore, the estimated profit margins of up to 95% could translate to robust earnings if the current network difficulty and KAS price remain stable. However, this is contingent on market factors which are inherently volatile.

In the long-term, the diversification into Kaspa mining positions Marathon well within the broader digital asset compute landscape. The faster transaction capabilities of Kaspa due to its BlockDAG architecture offer a competitive edge over more traditional PoW assets like Bitcoin. However, it also means increased competition as more entities may enter the space.

Investors should weigh the potential for high returns against the inherent risks in the digital asset market, including price volatility and regulatory uncertainties. Given the company's strategic positioning and strong balance sheet, their Kaspa mining initiative holds promise but warrants cautious optimism.

Tech Expert

The introduction of BlockDAG technology in Kaspa mining by Marathon Digital Holdings represents a technological innovation over traditional blockchain methodologies. Unlike the linear blockchain structure used by Bitcoin, BlockDAG allows multiple blocks to be created simultaneously, significantly enhancing transaction speeds. This capability is important for scalability and can lead to more efficient network operations.

Marathon's deployment of KS3, KS5 and KS5 Pro ASICs suggests they are using some of the most advanced hardware available for PoW mining. The estimated profit margins of up to 95% indicate that these ASICs are highly efficient under current market conditions. However, technology in the digital asset space evolves rapidly and staying ahead in terms of hardware capabilities will be essential for maintaining these high margins.

One potential drawback is the dependency on network conditions such as difficulty rates and KAS price stability. While Marathon currently benefits from high margins, any significant changes in these network conditions could impact the profitability of their operations. Additionally, as BlockDAG technology becomes more mainstream, competition could increase, potentially reducing profit margins.

Overall, the technological advancement of using BlockDAG in Kaspa mining positions Marathon at the cutting edge of PoW mining. However, investors should remain aware of the rapid pace of technological change and market dynamics in this sector.

93 Million KAS Mined, Equivalent to $15 Million, as of June 25, 2024

Fort Lauderdale, FL, June 26, 2024 (GLOBE NEWSWIRE) -- Marathon Digital Holdings, Inc. (NASDAQ:MARA) ("Marathon" or "Company"), a global leader in leveraging digital asset compute to support the energy transformation, today announced that the Company is mining Kaspa (KAS), a proof-of-work (PoW) digital asset, to further diversify its portfolio of digital asset compute.

Kaspa is currently the fifth largest proof-of-work digital asset by market cap. It boasts a market cap of $3.9 billion with approximately $64.8 million in daily trading volume as of June 25, 2024. The circulating supply is approximately 24 billion KAS with a current block reward of 103.83 KAS, and the terminal supply is capped at 28.7 billion KAS.

Similar to Bitcoin, Kaspa is an open-source, decentralized, and fully scalable Layer-1 protocol that uses proof-of-work as its consensus mechanism. However, unlike Bitcoin’s blockchain, which is linear and processes one block every ten minutes, Kaspa utilizes a BlockDAG (Directed Acyclic Graph) that enables multiple blocks to be produced simultaneously. The Kaspa network currently processes one block every second, allowing for faster transactions and providing Kaspa miners with the opportunity to potentially earn more block rewards in a given time frame.

In May 2023, Marathon began evaluating Kaspa as a potential way to diversify its revenue while continuing to utilize its current infrastructure and expertise in digital asset compute. After successfully deploying its first Kaspa ASICs in September 2023, the Company began scaling its operations.

Marathon has purchased approximately 60 petahash of KS3, KS5, and KS5 Pro ASICs, each of which is estimated by ASIC Miner Value to generate profit in certain cases up to 95% margins given the current network difficulty rate and price of KAS. 30 petahash of Marathon’s Kaspa ASICs are currently operational in the Company’s self-owned and operated facilities in Texas, and the remainder are currently expected to be fully energized in Q3 2024.

As of June 25, 2024, Marathon has mined 93 million KAS, which are currently valued at approximately $15 million.

“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,” said Adam Swick, Marathon’s chief growth officer. “Because of our existing infrastructure, our unique relationships with hardware manufacturers, our strong balance sheet, and the expertise of our team, Marathon was uniquely positioned to mine Kaspa and to capitalize on the higher margins that exist for those who can deploy Kaspa ASICs today. We look forward to continuing to support innovation in proof-of-work ecosystems, as we expand our position as a leader in digital asset compute.”

Investor Notice

Investing in our securities involves a high degree of risk. Before making an investment decision, you should carefully consider the risks, uncertainties and forward-looking statements described under "Risk Factors" in Item 1A of our most recent Annual Report on Form 10-K for the fiscal year ended December 31, 2023, filed with the SEC on February 28, 2024. If any of these risks were to occur, our business, financial condition or results of operations would likely suffer. In that event, the value of our securities could decline, and you could lose part or all of your investment. The risks and uncertainties we describe are not the only ones facing us. Additional risks not presently known to us or that we currently deem immaterial may also impair our business operations. In addition, our past financial performance may not be a reliable indicator of future performance, and historical trends should not be used to anticipate results in the future. See "Forward-Looking Statements" below.

Forward-Looking Statements

Statements made in this press release include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements can be identified by the use of words such as “may,” “will,” “plan,” “should,” “expect,” “anticipate,” “estimate,” “continue,” or comparable terminology. Such forward-looking statements are inherently subject to certain risks, trends and uncertainties, many of which the Company cannot predict with accuracy and some of which the Company might not even anticipate and involve factors that may cause actual results to differ materially from those projected or suggested. Readers are cautioned not to place undue reliance on these forward-looking statements and are advised to consider the factors listed above together with the additional factors under the heading “Risk Factors” in the Company's Annual Reports on Form 10-K, as may be supplemented or amended by the Company's Quarterly Reports on Form 10-Q. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events, new information or otherwise.

About Marathon Digital Holdings

Marathon Digital Holdings (NASDAQ:MARA) is a global leader in digital asset compute that develops and deploys innovative technologies to build a more sustainable and inclusive future. Marathon secures the world’s preeminent blockchain ledger and supports the energy transformation by converting clean, stranded, or otherwise underutilized energy into economic value.

For more information, visit www.mara.com, or follow us on:

Twitter: @MarathonDH
LinkedIn: www.linkedin.com/company/marathon-digital-holdings
Facebook: www.facebook.com/MarathonDigitalHoldings
Instagram: @marathondigitalholdings

Marathon Digital Holdings Company Contact:
Telephone: 800-804-1690
Email: ir@mara.com

Marathon Digital Holdings Media Contact:
Email: marathon@wachsman.com

FAQ

What new digital asset is Marathon Digital Holdings mining as of June 2024?

Marathon Digital Holdings is mining Kaspa (KAS), a proof-of-work digital asset.

How much Kaspa has Marathon mined and what is its value as of June 25, 2024?

Marathon has mined 93 million Kaspa, valued at approximately $15 million.

What is the market cap of Kaspa and its daily trading volume as of June 25, 2024?

Kaspa has a market cap of $3.9 billion and a daily trading volume of $64.8 million.

What is the block processing capability of Kaspa's network?

Kaspa's network processes one block every second, allowing for faster transactions and potentially higher block rewards.

How much computing power has Marathon acquired for Kaspa mining?

Marathon has acquired approximately 60 petahash of KS3, KS5, and KS5 Pro ASICs for Kaspa mining.

When are the remaining Kaspa ASICs expected to be fully operational?

The remaining Kaspa ASICs are expected to be fully operational by Q3 2024.