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Acquisition of shares in Marathon for 20 million USD

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Acquisition of shares in Marathon for 20 million USD

The mining business in the USA is booming. The most recent example is wealth management company Fidelity, which is acquiring shares in Marathon for $ 20 million. The mining company is meanwhile upgrading its fleet.

The international asset management company Fidelity is expanding its involvement in the mining business. The company has announced the purchase of a 7.4 percent stake in the large North American mining company Marathon Digital Holdings. This comes from several Media reports emerged. With the purchase, Fidelity joins other institutional giants such as the Vanguard Group (7.58 percent), Susquehanna (2.7 percent) and Blackrock (1.59 percent), which also hold shares in the company.

At the current price, the block of shares is worth about $ 20 million. It was spread across four Fidelity index-based funds (FSMAX, FNCFX, FSKAX and FCFMX). Together, these have a market capitalization of $ 170 billion. In contrast, the percentage that is accounted for by marathons seems to be negligible. Nevertheless, this deal naturally sends out a certain signal effect.

Because the acquisition of the shares by Fidelity is indeed an example of the growing trend among institutions and individual investors to get involved in the crypto industry either through traditional stocks or funds. If you take a look at the price of the Marathon share, a certain dependency on the BTC chart is immediately apparent. This is not surprising as Marathon is one of the largest mining companies in North America. A direct entry into BTC still seems too risky for many investors. The SEC does not want to approve a BTC ETF in the USA. Fidelity itself has also submitted an application to the regulatory authority.

Marathon Digital Holdings upgrades mining fleet

The above-mentioned Fidelity index funds also offer investors access to the largest crypto currency in terms of market capitalization without actually owning it.

Marathon is currently undergoing a massive upgrade in terms of its mining fleet. Over 19,000 S19 Pro ASIC miners are on the grid at the company’s facility in Hardin, Montana, USA. August 1, 2021 announced the company that it acquired another 30,000 S19 Pro Miners from Bitmain. Once all of the miners previously purchased are installed, the company’s mining fleet is expected to consist of approximately 133,000 miners generating approximately 13.3 EH / s. According to the company, Marathon continues to install new miners on a daily basis. The company expects Bitmain to ship all previously purchased miners by June 2022. In July alone, Marathon mined 442.2 Bitcoins, which is an increase of 66 percent compared to the previous month.

“July turned out to be an extremely productive month for our mining activities, largely due to the favorable development of the global hash rate,” said Fred Thiel, CEO of Marathon.

All content in this article is for informational purposes only and in no way serves as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.

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