SEC Serves Bitcoin Mining Company Marathon Digital With Subpoena, Again

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Bitcoin mining firm Marathon Digital Holdings said it received a subpoena from the U.S. Securities and Exchange Commission (SEC) over alleged violations of securities laws.

The company received an additional subpoena from the SEC on April 10, 2023, relating to, among other things, related party transactions, Marathon said in a filing Wednesday. We understand that the SEC may investigate whether or not there have been violations of federal securities law.

Marathon said it was cooperating with the SEC on the matter, which involves its data center in Hardin, Montana.

The company first disclosed that it received a subpoena from the SEC in November 2021.

Marathon has clarified that its disclosure controls and procedures were not effective at the reasonable assurance level as of March 31, 2023, with material weaknesses discovered creating a reasonable possibility that a material misstatement in our consolidated financial statements or our disclosures are not prevented or detected on a timely basis.

According to the company, these material weaknesses relate to four specific accounting areas, including consolidation, impairment of digital assets, disposal of property, plant and equipment, and principal versus agent considerations in revenue recognition.

Marathon did not immediately respond to Decrypts’ request for comment.

Financial results for the 1st quarter of 2023 for the Marathons

Along with the SEC filing, Marathon also released its first quarter financial results.

The company said it posted a net loss of $7.2 million, or $0.05 per share, in the fiscal quarter ended March 31, 2023, up from a net loss of $12.9 million. dollars, or $0.12 per share, during the prior year period ended. March 31, 2022.

Marathons’ revenue was $51.1 million for the quarter, slightly lower than $51.7 million a year earlier, with the company saying higher Bitcoin production was more than offset by lower of bitcoin prices during the current period of the year.

Overall, currently with a hash rate of 15.4 EH/s, Marathon produced a record 2,195 Bitcoin in Q1 2023, a 74% increase from 1,259 Bitcoin in Q1 2022, while reporting also gains on the sale of Bitcoin of $17.6 million as a result of the program to fund business operating costs.

After weathering a tumultuous 2022 that tested the resilience of our entire industry, this year is off to a strong start as we increased our hash rate, reduced our mining costs and improved our balance sheet at during the first quarter, Fred Thiel, Marathons president and CEO, said in a statement.

The company added that it remains on track to meet the hash rate target of 23 PE/s, hoping to achieve it by the middle of this year.

Marathon (MARA) stock was up nearly 9% at $10.22 at the closing bell on Wednesday.

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