This article has been republished with permission from Binance News.
According to CoinDesk, Bitcoin miner Marathon Digital (MARA) has announced that it will store some of its digital assets with Fidelity Digital Asset, adding a second custody partner in an effort to diversify. Previously, Marathon had stored all its bitcoin with a single provider. As part of its broader treasury management strategy, the company has now added a new, enterprise-grade custodian as its second custodian. In a separate filing, Marathon stated that it would open one or more custodial asset accounts with Fidelity.
Marathon may further expand and add more custodians in the future. The company held 13,726 bitcoin as of September 30 and is producing over 1,000 more per month. Marathon CFO Salman Khan said in a statement that it is an opportune time to diversify their bitcoin custody across multiple custodians. Custody plays a crucial role in crypto and other markets, as firms that do not want to store their own digital assets can entrust them with a third party. Having more than one company providing custody ensures that if a single provider encounters issues, not all assets will be lost. Marathon’s decision comes after several custodians, including Fortress Trust, have been targeted by hackers who stole some digital assets. In the case of Fortress Trust, the theft led to the custodian attempting to sell itself to blockchain tech company Ripple, but the deal ultimately fell through. Marathon’s stock was up 1.3% in post-market trading and has risen 116% this year, while bitcoin has climbed 71%.