Marathon Receives SEC Subpoena Related to 2020 Hardin Data Center Agreement; Shares Tumble

The bitcoin miner’s shares plummeted 27% on Monday, significantly underperforming other crypto miners.

Nov 15, 2021 at 6:40 p.m. UTC
Updated Nov 15, 2021 at 9:13 p.m. UTC

Aoyon Ashraf is crypto mining reporter with more than a decade of experience in covering equity markets

Marathon Digital Holdings (MARA) executives received a subpoena from the U.S. Securities and Exchange Commission (SEC) to produce documents and communications concerning its Hardin, Montana, data center facility, the company said in a 10Q filing on Monday.

  • The SEC is investigating whether Marathon Digital Holdings has been in violation of federal securities law.
  • Marathon Digital Holdings said it was cooperating with the investigation, without specifying the nature of the possible violations.
  • On Oct. 6, 2020, the bitcoin miner entered into a series of agreements with multiple parties to design and build a data center for up to 100-megawatts in Hardin, a small town in the northern part of the state, and issued 6 million of restricted Marathon common shares as part of the deal.
  • Last October, Marathon Digital Holdings announced a joint venture with Beowulf Energy for the Hardin data center, where Beowulf will also become an equity shareholder of Marathon.
  • Marathon Digital Holdings shares fell 27% on Monday, significantly underperforming its crypto mining peers. Meanwhile, the price of bitcoin was down about 0.5% in the last 24 hours.
  • Earlier on Monday, the bitcoin miner said it will raise $500 million in senior convertible notes to buy more bitcoin and bitcoin miners.

UPDATE (Nov. 15, 21:13 UTC): Updated share price movement.

The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Aoyon Ashraf is crypto mining reporter with more than a decade of experience in covering equity markets

Aoyon Ashraf is crypto mining reporter with more than a decade of experience in covering equity markets

Trending

1
First Mover Americas: Bitcoin Back Below $30K as Target Shortfall Shows Inflation Hitting Economy

The latest moves in crypto markets in context for May 18, 2022.

The latest moves in crypto markets in context for May 18, 2022.

2
Aave’s Decentralized Social Media Platform Arrives on Polygon

The launch of Lens Protocol comes weeks after Aave founder Stani Kulechov was temporarily suspended from Twitter.

The launch of Lens Protocol comes weeks after Aave founder Stani Kulechov was temporarily suspended from Twitter.

3
FTX, Liberty City Lead $20M Raise for Dev Platform DoraHacks

The hackathon startup will use the funds to launch an NFT-focused venture fund, among other things.

The hackathon startup will use the funds to launch an NFT-focused venture fund, among other things.

4
INX Taps Galaxy Digital Alum as Chief Financial Officer

Renata Szkoda previously served as finance director at the Mike Novogratz-led crypto financial services firm.

Renata Szkoda previously served as finance director at the Mike Novogratz-led crypto financial services firm.