July 23, 2024
Chicago 12, Melborne City, USA
Bitcoin News

SEC Issues New Subpoena to Bitcoin Miner Marathon

The United States-based Bitcoin mining business Marathon Digital made the announcement on Wednesday that it has been issued a new subpoena by the Securities and Exchange Commission (SEC) in connection with an ongoing investigation into a facility that is located in Montana. The inquiry is being conducted by the SEC. 

The Securities and Exchange Commission (SEC) “may be investigating whether or not there may have been any violations of the federal securities law,” according to a filing that was submitted by the SEC on May 10th. The document states that the SEC is “possibly investigating whether or not there may have been any violations of the federal securities law.” Marathon has made it clear that it is cooperating with the agency in question. Bloomberg was the first news outlet to report the information.

The SEC served Marathon with their first subpoena in November of 2021, requesting their participation in the investigation.  “On October 6, 2020, the Company engaged in a series of agreements with several companies to design and build a data center in Hardin, Montana, with a capacity of up to one hundred megawatts. These agreements were finalized on October 6, 2020. 

According to the most recent filing from the company, “the Company submitted a Current Report on Form 8-K on October 13, 2020.” “The 8-K discloses that pursuant to a Data Facility Services Agreement, the Company issued 6,000,000 shares of restricted Common Stock, in transactions exempt from registration under Section 4(a)(2) of the Securities Act of 1933, as amended.” [Translation:] “The 8-K discloses that pursuant to a Data Facility Services Agreement, the Company issued 6,000,000 shares of restricted Common Stock.” [Translation:] “The 8-K discloses that the Company issued 6,000,000 shares of restricted Common Stock in accordance with a Data Facility Services Agreement,”

The document that was submitted today indicates that the most recent subpoena was obtained on April 10th. At the end of the trading day, the share price of Marathon was determined to be $10.22, which represents an increase of over 9%. After-hours trading has resulted in a 0.78% decline in the price of the share.