Fidelity Investments, has invested $20 Million in Marathon Digital Holdings, which operates digital currency exchange GateHub and payment services provider X-CHANGE.

Fidelity, the largest asset manager in the world, has bought a 7.4% stake in Marathon Digital Holdings, a firm that created the “groundbreaking technology” behind bitcoin mining. Marathon’s acquisition of the Fidelity stake is the latest example of how the new breed of “blockchain” technology is disrupting the way traditional financial institutions make money. Marathon is one of the largest suppliers of blockchain technology, and its technology is used to “mine” new bitcoins, the digital currency that is now a hot topic among the computer geeks.

Fidelity Investments has become the latest major financial services company to get into the crypto game, confirming news of a 7.4 percent stake in Marathon Digital Holdings, a cryptocurrency mining and trading platform. “Fidelity has been a leader in financial services for decades and is a trusted advisor to corporations and government entities, investing in cybersecurity, digital currencies and the underlying blockchain technology,” Marathon CEO Kiprotich Korir said.

Fidelity purchases 7.4% stake in Marathon Digital Holdings for $20M

 

Fidelity Investments, a global financial services business, has announced the acquisition 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 biggest financial service businesses, with $4.9 trillion in assets under administration and more than 35 million customers worldwide.

On July 22, a $20 million transaction was completed, with the shares being distributed 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 acquisition places Fidelity alongside Vanguard Group, Susquehanna, and Blackrock, who hold 7.58 percent, 2.7 percent, and 1.59 percent of Marathon, respectively.

Mining stocks have become popular as a result of their propensity to follow the Bitcoin markets with exaggerated volatility. While BTC has increased by around 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:

“The amount of institutional ownership in our shares has increased dramatically in the past two quarters.”

Marathon chose to establish partner arrangements with hosting and power facilities rather than purpose them entirely, enabling the company to focus on deploying its resources to install mining gear, according to Thiel. 

Marathon purchases 30,000 additional Bitcoin miners, aiming for 13.3 EH/s hashing power

Marathon reported 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 bought in January, comprise 6,225.6 BTC worth $245 million.

The huge increase in monthly mining income was most likely fueled by China’s recent crackdown on the industry, which resulted in a substantial drop in Bitcoin’s network hash rate as miners turned down their computers and prepared to move abroad.

Fidelity Investments, the world’s largest asset management investmen, announced a 7.4% investment in Marathon Digital Holdings, a marketplace that connects businesses with underbanked consumers. Marathon will leverage Fidelity’s eCommerce platform to access credit and provide digital financial services to underserved consumers. Marathon works with businesses that seek to increase sales among low-income consumers.. Read more about marathon bitcoin mining and let us know what you think.

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