23 September 2023

Digital Technology Guru

Digital Technology Guru Reviews

Understanding Ownership Structure and Influence on Marathon Digital Holdings

2 min read
Understanding Ownership Structure and Influence on Marathon Digital Holdings

Marathon Digital Holdings, Inc. (NASDAQ:MARA) is a publicly traded company that has attracted significant attention from retail investors. With the top 25 shareholders owning 34% of the company, it is clear that the decisions made Marathon Digital Holdings are influenced shareholders from the larger public.

Institutions, accounting for 35% of the company’s shares, were not spared from the recent market cap drop of US$54 million. However, it was the retail investors as a group who suffered the maximum losses. Retail investors hold around 51% of the company’s shares, giving them the potential for significant upside or downside.

Looking at institutional ownership, Marathon Digital Holdings has attracted the attention of institutional investors who hold a substantial portion of the company’s stock. This indicates that the company has credibility in the investment community. However, it is important to note that institutional investors can also get it wrong at times, leading to significant share price drops.

Hedge funds, on the other hand, do not have a meaningful investment in Marathon Digital Holdings. The largest shareholder is The Vanguard Group, Inc. with 10% of shares outstanding. Other significant shareholders include the second and third largest holders, who own 7.0% and 3.0% of the shares outstanding, respectively.

It is worth noting that the top 25 shareholders collectively control less than half of the company’s shares, indicating a wide dissemination of shares and the absence of a dominant shareholder. This suggests that Marathon Digital Holdings is a company with a broad ownership base.

In terms of insider ownership, board members are considered insiders. Our data shows that insiders own less than 1% of Marathon Digital Holdings, Inc. This indicates that there is not a concentrated power within the group of insiders. However, it is positive to see board members owning shares, which aligns their interests with other shareholders.

The general public, consisting mostly of individual investors, collectively holds 51% of Marathon Digital Holdings shares. This ownership gives them some collective power and the ability to influence decisions on executive compensation, dividend policies, and proposed business acquisitions.

Understanding the ownership structure of Marathon Digital Holdings provides valuable insights into the influence of different shareholder groups. While it is essential to consider other factors and information, such as analyst sentiments and future forecasts, analyzing ownership structure helps in gaining a more comprehensive understanding of the company’s dynamics.

Sources:
– Simply Wall St
– Investopedia
– Corporate Finance Institute