Bitcoin Mining Company Marathon Digital Hit With SEC Subpoena

MINING MACHINES AT A BITCOIN FARM. IMAGE: SHUTTERSTOCK

Read the full article by Jeff Benson here

MARA shares are trading lower after the company confirmed the SEC might be looking into securities violations.

• Marathon Digital recently released its earnings report.

• A November 15 SEC filing divulged an SEC subpoena from Q3.

• The Bitcoin mining firm is trying to raise $500 million to buy more miners.
  The Las Vegas based Bitcoin mining company, announced solid third quarter numbers, with a 76% increase in revenue from the previous quarter.

• The most recent announcement has caused some concern for investors. "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."

• The price of MARA stock dipped on the 10th from a high of $79.19 to $64.12 before rebounding to $75.92 to end the week. In today's trading, it's scraping the $60 mark.

• The SEC, under former chair Jay Clayton, argued that Bitcoin is not a security—a tradable investment contract in a venture expected to make a profit.