Marathon Digital Pays $139 Million Fine In Contract Breach, MARA Stock Tanks 2.5%

Bhushan Akolkar
July 23, 2024
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Marathon Digital Clocks 168% Bitcoin hashrate Growth, Will MARA Stock Recover?

Highlights

  • Michael Ho wins legal battle against Marathon for breaching non-circumvent agreement.
  • The verdict underscores the importance of ethical business practices and honoring contractual obligation
  • MARA stock faces selling pressure correcting another 2.5% in Tuesday's pre-market session.

The largest Bitcoin miner, Marathon Digital (NASDAQ: MARA), has been fined $139 million for breaching a non-disclosure agreement. This penalty follows a jury verdict in favor of Michael Ho, former co-founder of US Bitcoin Corp and chief strategy officer at Hut 8.

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Marathon Digital Breaches Agreement, MARA Stock Tanks 2.5%

In the official press release, Affeld England & Johnson LLP, who represented Michael Ho explained that back in 2020, the executive had developed a growth strategy for Marathon Digital. This includes developing a large-scale Bitcoin mining facility in North America.

The law firm stated that Marathon breached the agreement by executing Ho’s strategy without compensating him for his efforts. Thus, the Bitcoin mining giant breached the non-circumvent agreement between the two parties.

David Affeld, one of the partners at Affeld England & Johnson LLP, said that this verdict puts clear emphasis on honoring the agreements. “It sends a powerful message that ethical business practices are not optional, they are essential. It reinforces the importance of honoring contractual obligations and respecting professional relationships,” said Affled.

After falling 3% on Monday, the MARA stock is facing further selling pressure dropping an additional 2,.5% in the pre-market session on Tuesday.

Also Read: Kaspa Price Jumps 13% As Bitcoin Mining Giant Marathon Digital Mines the Altcoin

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Bitcoin Miner Capitulation Is Over

Popular Bitcoin analyst Willy Woo said that one of the most popular indicators i.e. the Bitcoin miner capitulation is now over. The analyst also added that the Bitcoin hash rate is now recovering sharply suggesting the bottom in both – BTC price and hash rate – that aligns with the introduction of the new generation mining hardware to the Bitcoin network.

Woo highlighted that the new M66s hardware went live last week, followed by the S21 Pros this week. This would provide an additional thrust to the hash rate highlighting network growth and increased security.

Courtesy: Willy Woo

As reported by CoinGape, the Bitcoin mining stocks have given a strong recovery registering 30-40% gains over the past month. Market analysts believe that these stocks would continue to outperform Bitcoin in the coming months.

According to Woo, macro bottoms occur when miner profitability is at its lowest, and a significant signal emerges when a Bitcoin halving event reduces miner earnings by 50%, often leading to a proper bull run. He indicated that the market is currently in this stage, suggesting that miners are poised to see increased profitability moving forward.

Woo added that public listed Bitcoin miners are likely to break out very soon and now is the opportune time to invest in Bitcoin mining.

Also Read: US Govt Dumps $4M In Bitcoin Again, Another BTC Selloff Ahead?

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial markets. 

He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills. Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.