Bitcoin Miner Marathon Digital Receive Subpoena from SEC Over Violations of Securities Laws

In the latest development, Bitcoin miner Marathon Digital Holdings stated that it has received a subpoena from the US Securities and Exchange Commission in their ongoing investigation of the Montana Data Center involving the potential violations of securities laws.

In its filings on Wednesday, May 10, Marathon Digital said: “The Company received an additional subpoena from the SEC on April 10, 2023, relating to, among other things, transactions with related parties. 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”.

This is another subpoena sent to the company and its executives, after the first received in the quarter ending September 2021. The Las Vegas-based Bitcoin miner also restated its annual report and said in February this year that it had found accounting errors in financial statements for several quarters after the firm received comments from the US securities regulator.

Marathon Digital and US Operations

Marathon Digital (NASDAQ: MARA) is one of the largest publicly-traded crypto mining companies in the Us as per computing power. Marathon’s stock has been closely trading in sync with the movement in the Bitcoin price.

Being one of the biggest crypto miners in the US, Marathon is also holding a large amount of BTC on its balance sheet. However, the company was offloading some of its Bitcoins during the crypto winter of 2022 to meet the operational costs. In fact, this year in January, Marathon sold twice more Bitcoins than it minted during that period.

However, with the bitcoin price making massive gains this year in 2023, the MARA stock is already up by more than 200% year-to-date. On the yearly chart, the stock price is trading almost flat. This shows that Marathon has managed to recuperate the loss in its stock price incurred during the crypto winter of 2023.