Fidelity Buys Stakes Worth $20M In Marathon Digital Holdings

Fidelity Investments is an International Finance Corporation. It has recently announced its acquisition of a 7.4% stake in Marathon Digital Holdings which is a major North American mining company. This mining company at present operates 19,000 miners and plans to deploy another 100,000 miners in the next 12 months. Fidelity has assets worth US$4.9 trillion and is one of the largest financial services companies in the world. It has in total served more than 35 million customers worldwide. On the 22nd of July, both parties finalized the deal at a total price of 20 million U.S. dollars.

Fidelity Investments And Marathon Digital

The stock will be allocated to four index funds: Fidelity Nasdaq Composite Index Fund (FNCFX), Fidelity Extended Market Index Fund (FSMAX), Fidelity Series Total Market Index Fund (FCFMX), and Fidelity Total Market Index Fund (FSKAX). After the acquisition, Fidelity investment now stands alongside Vanguard Group, Susquehanna, and Blackrock who own 7.58%, 2.7%, and 1.59% of Marathon stakes respectively. These shares in the mining stocks are gaining popularity because they tend to track the Bitcoin market in an excessively volatile manner. As a matter of fact, since the beginning of 2021, Bitcoin has risen by about 240%. Moreover, at the same time, the stocks of the Marathon have risen by 660%.

Marathon Digital is a famous stock among all institutional asset management companies. Etf.com estimates that 18 exchange-traded funds (ETFs) currently own MARA, excluding Fidelity. Fred Thiel, the CEO of Marathon Digital in an interview celebrated the increasing institutional acceptance of his company. He said:

“The last two quarters have just been amazing [in] how much institutional ownership has grown in our sock.”

Thiel emphasized the fact that Marathon is focused on growth. This is because the company is more willing to sign partnerships with hosting and power utility companies rather than mentoring them. This allows Marathon to focus on mobilizing its resources so that it can deploy the mining hardware. On the 3rd of August, the company announced that Bitcoin production had increased by 66% in one month, and Marathon had mined 442.2 BTC, valued at $16.6 million. Marathon Digital currently holds 6,225.6 BTC. They have a value of 245 million U.S. dollars, including all the 4,812.66 Bitcoins that Marathon purchased in January. The significant increase in monthly mining revenue may be due to China’s recent crackdown on the industry. As miners shut down and prepare to migrate abroad, the network hash rate of Bitcoin has dropped significantly.

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