Mara Changes Tack Through Diversification with Fidelity

<p>Marathon Digital (Mara), the Bitcoin mining firm, is diversifying its
digital assets by partnering with Fidelity Digital Assets, a strategic move
that aims to secure its financial future.</p><p>Marathon's Financial Strategy Revolution</p><p>Marathon, a prominent Bitcoin miner, has historically entrusted its
entire Bitcoin stash to a single provider, according to a recent <a href="https://ir.mara.com/news-events/press-releases/detail/1328/marathon-digital-holdings-adds-new-enterprise-grade">statement</a> and as reported by CoinDesk.
However, the company is now breaking the mold. In a bold and calculated move to
enhance its treasury management strategy, Mara has embraced a new approach. The
company is ready to add an <a href="https://www.fidelitydigitalassets.com/">enterprise-grade
custodian</a> as a second protector, namely Fidelity Digital Assets.</p><p>A Prudent Step in a Dynamic World</p><p>The company isn't stopping at just one
alternative. Mara, which held 13,726 Bitcoins as of September 30 and
continues to mine over 1,000 more each month, envisions further
diversification. "We believe it is an opportune time to diversify our
Bitcoin custody across multiple custodians," reveals Mara CFO Salman Khan.</p><blockquote><p lang="en" dir="ltr">As part of its broader treasury management strategy, Marathon Digital Holdings has added a new, enterprise-grade custodian as its second <a href="https://twitter.com/hashtag/bitcoin?src=hash&amp;ref_src=twsrc%5Etfw">#bitcoin</a> custodian. Learn more: <a href="https://t.co/xexHDeD4BV">https://t.co/xexHDeD4BV</a></p>— Marathon Digital Holdings (NASDAQ: MARA) (@MarathonDH) <a href="https://twitter.com/MarathonDH/status/1714746593860010101?ref_src=twsrc%5Etfw">October 18, 2023</a></blockquote><p>Ensuring Security Amidst Uncertainty</p><p>The role of <a href="https://www.financemagnates.com/search-results/?searchPhrase=custodian">custody</a>
in the <a href="https://www.financemagnates.com/cryptocurrency/">cryptocurrency</a>
sphere is paramount. Firms, eager to avoid the burden of self-storage, often
choose to entrust their digital assets like Bitcoin to a trusted third party.
But herein lies the wisdom of diversification. By placing your eggs in more
than one basket, you safeguard your assets. In case one provider encounters
turbulence, not all your holdings will be in jeopardy.</p><p>A Timely Decision</p><p>Marathon's strategic pivot coincides with recent events where various
custodians, including Fortress Trust, were targeted by audacious hackers,
leading to the theft of digital assets. Fortress Trust's experience even
prompted them to explore a sale to blockchain tech giant <a href="https://www.financemagnates.com/tag/ripple/">Ripple</a>, though the deal
ultimately unraveled.</p><p>Mara's stocks are already reaping the rewards, with a 1.3% increase in
post-market trading. While Bitcoin has made significant gains of 71% this year,
Marathon Digital's stocks have surged an impressive 116%.</p>

This article was written by Louis Parks at www.financemagnates.com.