Marathon Digital Holdings Faces Second Subpoena By SEC In Relation To Montana Mining Operation
Marathon Digital Holdings, a public Bitcoin miner, has received another subpoena from the Securities and Exchange Commission (SEC) regarding whether there were possible violations of federal securities law in agreements related to a Hardin, Montana data center facility that Marathon built.
“The Company and certain of its executives received a subpoena to produce documents and communications,” related to the facility in the third quarter of 2021, a quarterly filing by the company stated.
In that agreement, Marathon issued 6,000,000 shares of restricted Common Stock, “in transactions exempt from registration under Section 4(a)(2) of the Securities Act of 1933.” However, the company filing revealed that it recently received another subpoena from the SEC on April 10, 2023, “relating to, among other things, transactions with related parties.”
The company says it is cooperating with the investigation. The facility in Montana was designed to have up to 100-megawatts of power, according to the filing.
Marathon’s stock price has been volatile in recent months, reflecting the ups and downs of the bitcoin market, however, the stock has generally followed an upward trend since early 2021, as the value of bitcoin has risen.