Cryptocurrency Mining Company Shares Fall After SEC Issued Subpoena for Marathon Digital

The United States Securities and Exchange Commission (SEC) has directed cryptocurrency mining company Marathon Digital Holdings to submit documents and communications from one of its mining facilities in Montana.

According to a November 15 file with the SEC, Marathon Digital received a subpoena regarding an investigation into possible violations of federal securities law related to its Hardin, Montana data center. In the third quarter of 2021, the SEC ordered the mining firm to submit documents and communications for the 100 megawatt facility, which it arranged to develop and store with Bitcoin (BTC) miners in October 2020.

Marathon Digital said it was cooperating with the SEC’s investigation, but did not elaborate on the subpoena. A separate filing from October 2020 shows that the company issued 6 million restricted common shares “in record-exempt transactions.”

Marathon Digital stock prices fell roughly 17% today to $ 63.07 when news of the subpoena hit the mainstream media, as did those of major cryptocurrency mining firms including Riot Blockchain, Bitfarms, Bit Digital. and Hut 8, falling 6%, 2%, 3% and 5%, respectively. Although share prices can drop when the price of BTC falls, data from Cointelegraph Markets Pro shows that the crypto asset is only down about 2.4% today to hit $ 63,798 at press time.

Today Marathon Digital announced that it was planning to buy more BTC and establish new cryptocurrency miners through a $ 500 million private debt offering. Cointelegraph reported on Nov. 3 that shares in the company, MARA, hit a six-year high, with the mining firm racking up $ 460 million in Bitcoin.

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