FORT LAUDERDALE - Marathon Digital (NASDAQ:MARA) Holdings, Inc. (NASDAQ:MARA), a company specializing in digital asset compute, has diversified its mining operations by extracting 93 million Kaspa (KAS) coins, valued at about $15 million, as of June 25, 2024. The proof-of-work digital asset Kaspa ranks as the fifth largest by market cap, which stands at $3.9 billion with a daily trading volume of approximately $64.8 million.
The company began evaluating Kaspa in May 2023 and has since scaled up its operations. Marathon has invested in roughly 60 petahash of Kaspa-specific ASICs, with 30 petahash already operational in Texas. The remaining hardware is slated to be fully functional by Q3 2024.
Marathon's Chief Growth Officer, Adam Swick, highlighted the company's strategic position to mine Kaspa, leveraging existing infrastructure and expertise. He noted the potential for higher margins with Kaspa ASICs and the company's aim to support innovation within proof-of-work ecosystems.
Kaspa is an open-source, decentralized Layer-1 protocol that differs from Bitcoin's linear blockchain by using a BlockDAG structure, allowing for the simultaneous production of multiple blocks. This feature enables the Kaspa network to process a block every second, which could lead to more frequent block rewards for miners.
Investors are cautioned that investing in Marathon's securities involves risks and uncertainties, as detailed in the company's latest Annual Report on Form 10-K. Forward-looking statements within this press release are subject to various risks and should not be relied upon as guarantees of future performance.
This news is based on a press release statement from Marathon Digital Holdings.
InvestingPro Insights
Marathon Digital Holdings, Inc. (MARA) has been making significant strides in the digital asset mining sector, as evidenced by their recent foray into mining Kaspa coins. The company's strategic investment in Kaspa-specific ASICs underscores its commitment to diversifying its mining operations and capitalizing on emerging opportunities within the proof-of-work ecosystems. As investors consider Marathon's growth trajectory and future prospects, several metrics and tips from InvestingPro provide a deeper understanding of the company's financial health and market performance.
An impressive 328.1% revenue growth over the last twelve months as of Q1 2024 indicates that Marathon has been rapidly expanding its operations, potentially outpacing many competitors in the digital asset mining industry. The company's revenue of $501.57M USD during this period reflects its successful scaling efforts and its ability to capitalize on the burgeoning cryptocurrency market.
The stock's price volatility is a critical factor for investors to consider, as noted in one of the InvestingPro Tips. With a 6-month price total return of -28.6%, Marathon's stock has demonstrated significant fluctuations, which may appeal to risk-tolerant investors looking for potential high-reward opportunities.
For those seeking a more in-depth analysis, InvestingPro offers additional insights, including 11 more InvestingPro Tips that can help investors make informed decisions. These tips range from anticipated sales growth to the company's profitability and debt levels. As you explore these tips, remember that you can get an extra 10% off a yearly or biyearly Pro and Pro+ subscription with the coupon code PRONEWS24.
Marathon's commitment to supporting innovation within proof-of-work ecosystems, as stated by their Chief Growth Officer, is also reflected in their financial metrics, with a P/E Ratio of 8.47 suggesting a potentially undervalued stock in comparison to future earnings potential. This could be an attractive entry point for investors who believe in the long-term value proposition of the company's mining operations.
As Marathon Digital Holdings continues to navigate the dynamic landscape of digital asset mining, these InvestingPro insights offer a snapshot of the company's financial performance and market sentiment. Visit https://www.investing.com/pro/MARA for a comprehensive view of Marathon's financial details and to utilize the additional InvestingPro Tips available.
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