Fidelity investments have made a major investment recently as it purchased a 7.4% stake in a Bitcoin mining firm, Marathon Digital holdings. It is a North American mining firm that has over 19,000 machines mining right now. The company also has plans to deploy another 100,000 mining machines in the next 1 year. This is a major bet on the mining industry by Fidelity as this is a $20 million investment.
Fidelity has over $4.9 trillion under its management, making them one of the largest financial companies globally. They have a lot of financial products where many people put their money which makes this investment great for the mining firm.
More about the investment
After the purchase, Fidelity has spread the shares of the mining firm across four index funds, namely 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 (FCFMX). Even other large companies own stakes in Marathon, showing that the mining company is really doing well, and so is the industry.
Specifically, for Marathon Digital Holdings, the company’s shares have outperformed Bitcoin itself in 2021. While BTC is up 240%, which is a big number, the mining company’s shares are up by 660% in 2021. Interest in the shares of other mining companies is also taking off as the mining market becomes more mainstream.
Mining firm Marathon digital
Being one of the best mining companies, Marathon digital has seen a steady flow of investor money in their company. The company’s shares are included in about 18 ETFs, and big investment companies also have stakes in the company. Marathon digital has seen an increase of over 66% month after month in their BTC production. At present, they have 6225.6 Bitcoins worth nearly $250 million, including both the purchased and mined Bitcoins.
Back in January, the company purchased nearly 4800 Bitcoins which have also proved to be fruitful for them. As of now, they are focusing on expanding even further by deploying new machines and increasing their production.
What are your thoughts on the 7.4% stake that Fidelity has purchased in Marathon Digital Holdings? And do you think this will be a fruitful investment for the company? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.