Marathon Digital Subpoenaed By SEC Over Potential Securities Laws Violation 15

Marathon Digital Subpoenaed By SEC Over Potential Securities Laws Violation

  • The Securities and Exchange Commission has subpoenaed Bitcoin mining firm Marathon Digital. 
  • The subpoena is in relation to an investigation into Marathon’s data center in Montana, U.S.
  • The SEC previously subpoenaed the Montana-based facility to get access to its documents and communications. 

The U.S. Securities and Exchange Commission (SEC) reportedly subpoenaed Nevada-based Bitcoin mining firm Marathon Digital Holdings last month. The securities regulator issued the subpoena to the second-largest publicly traded Bitcoin miner in the United States in relation to several matters including transactions between Marathon and its affiliated entities. 

Marathon Digital’s Montana Data Center Under Scrutiny

According to a report by Bloomberg, Marathon Digital received the subpoena from the SEC on April 10, 2023. The subpoena was in relation to the Bitcoin mining giant’s data center facility based in Hardin, Montana. Marathon said in a statement that the federal regulator’s investigation may be to determine if the Bitcoin miner may have violated federal securities law.  The company is reportedly cooperating with the SEC in this matter. 

The latest move from the Securities and Exchange comes more than two years after Marathon Digital received a similar subpoena on September 30, 2021, by way of which the SEC sought to gain access to the bitcoin miner’s internal documents and communications concerning the Hardin, Montana-based data center facility. 

Earlier today, Marathon Digital released the company’s financial reports for the quarter ending March 31, 2023. The first quarter of the year saw the Bitcoin miner shrink its net loss to $7.2 million as compared to a net loss of $23 in Q1, 2022. The company’s latest loss per share came in at $0.05, a massive reduction from the $0.12 in the first quarter of last year. 

As for BTC revenues, Marathon recorded gains on the sale of bitcoin of $17.6 million in the quarter in line with the previously reported plan of selling bitcoin to fund operating costs. At the time of writing, Marathon Digital’s share price was changing hands at $10.22, up nearly 9% over the past 24 hours.