SEC Subpoena’s Bitcoin Mining Company

Marathon Digital Holding the Las Vegas-based Bitcoin mining company, announced a 76% increase in revenue from the last quarter just last week, but this week its been revealed that they were being also subpoenaed by the SEC.

The news came from the 10-Q_quarterlry report with the U.S Securities and Exchange Commission, it states the subpoena was received the last quarter and was issued to the Hardin, and Montana, data centers.

During the quarter ended September 30, 2021, the Company and certain of its executives received a subpoena to produce documents and communications concerning the Hardin, Montana data center facility described in our Form 8-K dated October 13, 2020," the filing states. "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 Digital is a self-mining corporation, with its whole operation riding on the production of mining machines, and the mining of Bitcoin, then converting the funds into cash. With its eventual goal to buy up miners to push the hash rate up within the next couple of years.

The expansion will be funded by the $500 million the company had raised through senior convertible notes, the type where investors earn interest with the supply of cash flow.

Marathon is one of the few crypto-related companies publicly traded on the stock market, but like many of its cohorts, it is not listed on Nsdaq- meaning it must file annual reports to the SEC and disclose pertinent information about its finances and investors.

Since the announcement, the price of MARA (Marthon’s stock) dropped from $79.19 to 64.12 before climbing back and settling at $75.92 before the end of the trading day.