Bitcoin miner Marathon Digital (MARA) has expanded its operations to become a multi-coin crypto miner, adding the mining of Kaspa (KAS), a layer 1 protocol, to diversify its revenue streams.

Kaspa operates using a proof-of-work (PoW) consensus mechanism known as the GHOSTDAG protocol. Unlike Bitcoin, this protocol allows for multiple blocks to be produced simultaneously, which accelerates transaction speeds and provides more block rewards for miners. This new approach aligns with Marathon’s strategy to leverage its expertise in digital asset computing to generate diversified revenue.

Marathon began mining Kaspa in September of last year, starting with the deployment of its first mining computer. Since then, the company has invested in 60 petahash worth of mining machines capable of generating profit margins of up to 95%. Currently, 30 petahash of these mining rigs are operational at Marathon’s Texas sites, with the remaining set to go online by the third quarter of this year. To date, Marathon has mined 93 million KAS, valued at approximately $15 million.

The Kaspa token has seen a significant price increase of nearly 50% this year, outperforming Bitcoin’s 44% rise and the broader CoinDesk 20 index’s 16% gain over the same period. This strong performance has made Kaspa an attractive addition to Marathon’s mining portfolio.

The move to diversify comes as Bitcoin miners seek new revenue streams amid the challenges posed by the crypto winter and recent Bitcoin halving events, which have intensified competition within the industry. Many miners are exploring ways to utilize their existing infrastructure for artificial intelligence (AI) and other computational needs. Others, including Marathon, are looking to monetize additional layers of the Bitcoin network to boost their earnings.

Marathon’s chief growth officer, Adam Swick, emphasized the strategic importance of mining Kaspa, highlighting its potential to create a diversified revenue stream that complements the company’s core capabilities in digital asset computing.

In conclusion, Marathon Digital’s entry into Kaspa mining represents a strategic effort to diversify and strengthen its revenue base amid evolving market conditions. By leveraging advanced PoW protocols like GHOSTDAG, Marathon aims to enhance its profitability and maintain a competitive edge in the rapidly changing crypto mining landscape.