In Brief:
- As per SEC’s filing, Marathon Digital has received the subpoena in the quarter ending September 30, 2021.
- It is expected that the company might have to present documents related to one of its mining centers based in Montana.
- Marathon’s stock price has fallen by 27% over the past 24 hours.
On 15 November, US SEC released a filing informing that Marathon Digital has received the subpoena in the quarter ending September 30, 2021.
Interestingly, Marathon had issued 6 million shares of restricted common stock in transactions exempt from regulation. These shares are supposedly related to agreements surrounding the construction and the design of this Montana-based mining center.
Hence, it is expected that the subpoena will force the company to bring forward documents related to one of its mining centers based in Montana.
Marathon’s stock (MARA) has suffered significantly following the news. Its price has fallen by 27% over the past 24 hours.
Marathon revealed, “We understand that the SEC may be investigating whether or not there may have been any violations of the federal securities law. We are cooperating with the SEC.”
The SEC filing stated that during the quarter ended September 30, 2021, the Company and certain of its executives received a subpoena to produce documents and communications concerning the Hardin, Montana data center facility which was described in their Form 8-K dated October 13, 2020.”
SEC has gone on a ‘filing subpoena spree’ lately. Last week, SEC had filed a subpoena against Singapore-based crypto firm Terraform Labs PTE, Ltd., and its co-founder and CEO, Do Kwon.
