Bitcoin mining firm Marathon Digital Holdings has received another subpoena from the Securities and Exchange Commission. The recall relates to its Montana data center, which the regulator claims may have violated securities laws.
The company said it is cooperating with the Securities and Exchange Commission after an initial subpoena on April 10 related to “related party transactions.”
“We understand that the SEC may investigate whether or not there were any violations of federal securities law,” she stated.
Marathon Digital was also subpoenaed in September 2021 for documents related to the Hardin, Montana data center.
The company admitted to finding “accounting errors” in the financial statements after scrutiny by the Securities and Exchange Commission, according for bloomberg.
The financial regulator is leaving no stone unturned in its relentless attack on the cryptocurrency industry. However, it is not clear how a bitcoin mining company can run afoul of securities laws.
Marathon makes a net loss of $7 million
On May 10th, Marathon mentioned A net loss of $7.2 million, or $0.05 per share, during the first fiscal quarter of 2023. This is down from the $12.9 million net loss it reported in the first quarter of 2022.
Its revenue was $51.1 million for the quarter, slightly lower than the prior year’s revenue of $51.7 million. Moreover, the 74% increase in Bitcoin production has been offset by the BTC price drop in the current year period.
Fred Thiel, Chairman and CEO of Marathon, said:
“After navigating a turbulent 2022 that tested the resilience of our entire industry, this year is off to a strong start as we increased our hashrate, lowered our cost to mines, and improved our balance sheet during the first quarter.”
The company’s stock (MARA) rose 9% on the day to $10.15 in after-hours trading. Marathon shares are up nearly 200% this year, outperforming the bitcoin and cryptocurrency markets.
Mining revenues rise
Bitcoin miner profitability, or retail priceincreased this month as the memcoin craze and the BRC-20 ranking drove up network transactions and fees.
The hash rate, which is measured in dollars per squiggle per second per day, rose to its highest level in nearly a year at $0.127 on May 9.
The move coincided with a peak in daily BTC transactions of over 580,000 and an increase in average fees to over $20.
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