Marathon Digital Holdings, a public bitcoin mining company, has received another subpoena from the Securities and Exchange Commission (SEC) regarding whether there were potential violations of federal securities law in the agreements related to the Hardin, Montana data center facility that Marathon built.
“The company and some of its executives received a subpoena to provide documents and correspondence,” relating to the facility in the third quarter of 2021, Quarterly deposit by the said company.
In that agreement, Marathon issued 6,000,000 shares of restricted common stock, “in transactions exempt from registration pursuant to Section 4(a)(2) of the Securities Exchange Act of 1933.” However, the company’s filing reveals that it recently received another subpoena from the Securities and Exchange Commission on April 10, 2023, “relating to, among other things, related party transactions.”
The company says it is cooperating with the investigation. The facility in Montana is designed for up to 100 megawatts of power, according to the filing.
The share price of Marathon has been volatile in recent months, reflecting the ups and downs of the bitcoin market, however, the stock has generally followed an upward trend since early 2021, as the value of bitcoin soared.