Crypto mining stocks dip as SEC issues subpoena for Marathon Digital mining facility

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

According to a filing on Monday with the SEC, Marathon Digital has received a subpoena regarding an investigation into possible violations of federal securities law relating to its data center in Hardin, MT. In the third quarter of 2021, the SEC ordered the mining company to produce documents and communications for the 100-megawatt facility, for which it had arranged to develop and store with Bitcoin (BTC) miners in October 2020. .

Marathon Digital said it was cooperating with the SEC investigation but did not give details of the subpoena. A separate October 2020 filing shows the company issued 6 million restricted common shares “in exempt transactions.”

Marathon Digital’s stock price fell about 17% on Monday to $ 63.07 as news of the assignment reached major outlets, as did those of major crypto mining companies including Riot Blockchain, Bitfarms, Bit Digital and Hut 8 – down 6%, 2%, 3% and 5%, respectively. While stock prices may drop when the price of BTC drops, data from Cointelegraph Markets Pro shows the crypto asset only fell around 2.4% on November 15 to hit $ 63,798 at the time of trading. the publication.

Related: Bitcoin Miners Turn To Nuclear Power For Sustainable Energy

Earlier Monday, Marathon Digital announced that it plans to buy more BTC and set up new crypto miners through a $ 500 million private debt offering. Cointelegraph reported on November 3 that the company’s MARA share price hit a six-year high, with the mining company racking up $ 460 million worth of Bitcoin.

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