• Fidelity Investments acquires a 7.4 percent stake in Bitcoin mining company Marathon

  • Marathon Digital Holdings has released its July bitcoin production and mining operation updates, with bitcoin production increasing 66 percent month over month. Furthermore, in July, the financial services behemoth Fidelity Investments paid approximately $20 million for a 7.4 percent stake in Marathon.

    Fidelity Investments acquires Marathon shares for $20 million.

    Fidelity Investments, headquartered in Boston, is one of the world’s largest asset managers, with $4.9 trillion in assets under management (AUM). Fidelity has been involved with cryptocurrencies and blockchain for many years, and on July 22, Fidelity invested $20 million in Marathon Digital Holdings, acquiring a 7.4 percent stake (Nasdaq:MARA).

    Fidelity added the shares to four index funds: the Fidelity Series Total Market Index Fund (FCFMX), the Fidelity Extended Market Index Fund (FSMAX), the Fidelity Total Market Index Fund (FSKAX), and the Fidelity Nasdaq Composite Index Fund (FNCFX). The decision by Fidelity to spread crypto investment vehicles across index-based funds with a $170 billion valuation is part of a growing trend of asset managers dealing with digital currency products.

    Fidelity has joined the ranks of marathon investors such as Vanguard, Blackrock, and Susquehanna.

    Marathon also announced this week that it had signed an agreement with Bitmain to purchase 30,000 Antminer bitcoin mining rigs. Marathon immediately released statistics for its July performance in response to the announcement. The company reported a significant month-over-month increase in bitcoin production to 422.2 BTC valued at more than $16 million. According to the company’s audit, the firm’s BTC holdings today are approximately 6,225.6 BTC worth $236 million at the time of writing.

    Aside from Fidelity, a number of other major financial institutions have purchased Marathon stock. As of today, Blackrock owns 1.59 percent of Marathon, Susquehanna owns 2.7 percent, and Vanguard Group owns approximately 7.58 percent of MARA shares. According to Marathon’s July audit, the company received approximately 19,401 S19 Pro ASIC miners from Bitmain over the last year. Marathon’s fleet currently consists of approximately 19,395 active miners that generate approximately 2 exahash per second (EH/s) of hashrate.

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