Marathon Digital Holdings, a publicly-listed bitcoin mining company, has recently revealed that it was served with a subpoena by the U.S. Securities and Exchange Commission (SEC) in relation to an investigation concerning the firm’s Montana mining facility. The SEC is reportedly looking into potential violations of federal securities law.
Marathon’s Montana Mining Facility Under SEC Investigation, Company Receives Second Subpoena
Marathon Digital Holdings (Nasdaq: MARA) was served with a second subpoena on April 10, 2023, following a previous subpoena in October 2020. The company disclosed the news in its May 10 SEC filing, revealing that it has now received a total of two subpoenas.
According to the filing, the subpoena requires the company and certain executives to produce documents and communications related to the Hardin, Montana data center facility, which was previously described in a Form 8-K dated October 13, 2020. Marathon said it is fully cooperating with the investigation, and will provide the requested information to the SEC.
“The company received an additional subpoena from the SEC on April 10, 2023, relating to, among other things, transactions with related parties,” Marathon added. “We understand that the SEC may be investigating whether or not there may have been any violations of the federal securities law. We are cooperating with the SEC.”
Marathon’s subpoena comes on the heels of the company’s announcement of a partnership with Abu Dhabi-based Zero Two. The two firms are planning to build two large-scale immersion-cooled crypto-mining facilities. However, the company’s shares have taken a hit, with a 5.14% drop in the past day and a 6.78% decline over the last five days against the U.S. dollar. Despite the recent drop, Marathon’s stock has been performing well this year, with a 184.41% increase in 2023.
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