Fidelity Investments, which manages assets of $10.4 trillion, on July 22 acquired a stake in the Nasdaq-listed Marathon Digital Holdings.
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Last month Fidelity Investments Inc. purchased a 7.4% stake worth ~$20 million in Marathon Digital Holdings, one of the largest bitcoin mining operations in North America, across four index funds. @Anthony_Tellz explores the development here:https://t.co/LCt7b7f60C
— Forbes Crypto (@ForbesCrypto) August 4, 2021
The publication valued the purchase at around $20 million.
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Shares were distributed across various funds managed by the parent company with a combined market value of $170 billion. They included 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). They are popular among retirement plan participants.
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Forbes noted that fund buyers effectively gained exposure to Bitcoin without direct ownership of the coins.
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As a result of the deal, Fidelity Investments joined Marathon Digital Holdings’ list of top shareholders, alongside Vanguard Group (7.58%), Susquehanna (2.7%), and BlackRock (1.59%).
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\”We are for expanding the presence of institutional investors\”, — said Marathon Digital Holdings chief Fred Thiel.
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Earlier, in May 2021 Marathon announced the construction of a data center in Texas with a capacity of 300 MW. The new facility is planned to be 70% carbon-neutral.
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In July Marathon Digital Holdings mined 442.2 BTC, increasing the number of held coins to 6,225.6 BTC with an estimated value of $260.7 million. In June the figure stood at 256.5 BTC. The improvement was aided by developments in China.
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In August Marathon Digital Holdings acquired 30,000 Antminer S19j Pro devices from Bitmain for $120.7 million.
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