Crypto mining company Marathon Digital has diversified its mining operations. Via a recent announcement, the firm unveiled that it has started mining proof-of-work crypto asset Kaspa [KAS].

Elaborating on the reason why the firm decided step into KAS' arena, Adam Swick, Marathon’s Chief Growth Officer revealed,

“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.”

By doing so, the firm is leveraging its edges including its existing infrastructure, its relationships with hardware manufacturers, its strong balance sheet, and the expertise of the team. As a result, the mining firm is “uniquely positioned” to mine Kaspa and to take advantage of “the higher margins.”

The miner intends to continue fostering innovation in proof-of-work ecosystems.

Around a year back, Marathon started contemplating mining Kaspa and diversifying its revenue. It ended up successfully deploying its first Kaspa ASICs in September 2023 and soon started scaling its operations. The latest announcement revealed,

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

The mining company has purchased approximately 60 petahash of KS3, KS5, and KS5 Pro ASICs. Using the ASIC Miner Value yardstick, each of them is estimated to generate profit up to 95% margins in some cases.

According to the announcement, around 30 petahash of Marathon’s Kaspa ASICs are currently functional in the company’s self-owned and operated facilities in Texas. The remaining are presently expected to be fully energized in the third quarter of this year.

That being said, it should be noted that the firm is not “pivoting” from Bitcoin to Kaspa mining. Via a recent post on X, Robert Samuels, the Vice President of Investor Relations at Marathon Digital clarified,

“FYI - Kaspa will represent just 1% of our energy capacity once fully deployed. Let's not try and spin it any other way. To say we are "pivoting" is wrong and irresponsible.”

During the pre-market hours on Thursday, the American digital asset tech company’s stock was trading 0.052% lower at $19.36.