Fidelity Investment Inc. buys a 7.4% stake worth approximately $20 million in Marathon Digital Holdings, the largest bitcoin mining operation in North America.
As per the Forbes report, the investments were made through four of Fidelity’s indexes, including Fidelity Extended Market Index (FSMAX), Fidelity Nasdaq Composite Index Fund (FNCFX), Total Market Index Fund (FSKAX), and Fidelity series Total Market Index Fund (FCFMX). All these indexes have as much as $170 billion market capitalization.
Marathon Digital Holdings operates one of the largest digital currency mining operations in North America. Marathon currently operates with 19,000 miners, with a further 100,000 machines slated for deployment over the next 12 months. With this purchase, Fidelity joins giants institutional-like Vanguard Group (7.58%), Susquehanna (2.7%), and Blackrock (1.59%). As they also have shares of the marathon.
Also Read: Marathon Digital to Buy New Mining Machines From Bitmain
“We’re super excited about the institutional ownerships,” says Marathon CEO Fred Thiel in an interview following the Fidelity disclosure. “If you look at the change from last year to this year and even the last two quarters have just been amazing [in] how much institutional ownership has grown in our stock,” adds Thiel.
With the recent purchase, Marathon shares have grown by about 660% in 2020. Corollary sending the company’s market capitalization to $2.86 billion. On August 3, the firm announced a 66% increase in Bitcoin production month-over-month, with Marathon having mined 442.2 BTC worth $16.6M. The firm’s bitcoin holdings are currently 6,225.6 BTC worth $245 million, including the 4,812.66 BTC Marathon buys in January.
