Fidelity buys a 7.4% interest in Marathon Digital Holdings for $20 million

• Fidelity Investments, a global financial services corporation, has announced the purchase of a 7.4% interest in Marathon Digital Holdings, a significant North American mining company
• The purchase places Fidelity alongside Vanguard Group, Susquehanna, and Blackrock, who control 7.58 percent, 2.7 percent, and 1.59 percent of Marathon, respectively
• Marathon revealed a 66 percent rise in Bitcoin output month over month on August 3, with 442.2 BTC worth $16.6 million mined

Fidelity Investments, a global financial services corporation, has announced the purchase of a 7.4% interest in Marathon Digital Holdings, a significant North American mining company. Marathon now has 19,000 miners in operation, with another 100,000 set to be deployed in the next 12 months. Fidelity is one of the world’s largest financial service firms, with $4.9 trillion in assets under administration and more than 35 million clients worldwide. 

On July 22, a $20 million purchase was concluded, with the shares being split among four index-based funds: Fidelity Extended Market Index Fund (FSMAX), Fidelity Nasdaq Composite Index Fund (FNCFX), Fidelity Total Market Index Fund (FSKAX), and Fidelity Series Total Market Index Fund (FSKAX) (FCFMX).

The purchase places Fidelity alongside Vanguard Group, Susquehanna, and Blackrock, who control 7.58 percent, 2.7 percent, and 1.59 percent of Marathon, respectively. Mining stocks have become popular as a result of their tendency to track the Bitcoin markets with exaggerated volatility. While BTC has increased by about 240 percent since the beginning of 2021, Marathon’s stock has increased by 660 percent. 

Marathon is a popular stock among institutional asset managers, with Etf.com reporting that 18 exchange-traded funds (ETFs), excluding Fidelity, now own MARA. Marathon CEO Fred Thiel expressed his delight in the growing institutional acceptance of his company in an interview, saying that the amount of institutional ownership in our shares has risen dramatically in the previous two quarters. 

Marathon chose to negotiate partner arrangements with hosting and power facilities rather than purpose them entirely, letting the company focus on deploying its resources to install mining hardware, according to Thiel. Marathon revealed a 66 percent rise in Bitcoin output month over month on August 3, with 442.2 BTC worth $16.6 million mined. The firm’s total Bitcoin holdings, including the 4,812.66 BTC Marathon acquired in January, comprise 6,225.6 BTC worth $245 million. The large increase in monthly mining earnings was most likely fueled by China’s recent crackdown on the industry, which resulted in a significant drop in Bitcoin’s network hash rate as miners turned off their computers and prepared to relocate offshore.

Ritika Sharma

With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.