Crypto mining stocks are falling as the SEC issues a subpoena against the mining facility
The U.S. Securities and Exchange Commission has asked cryptocurrency mining company Marathon Digital Holdings to prepare documentation and contact information for one of its Montana mining facilities.
According to a filing with the SEC on Nov. 15, Marathon Digital received a subpoena related to an investigation into possible violations of federal securities laws regarding the data center, whether Hardin, Montana. In the third quarter of 2021, the SEC requested the mining company to provide documentation and contact information for the 100-megawatt facility that the company is expected to expand and reserve with Bitcoin (BTC) miners in October 2020.
Marathon Digital said it was cooperating with the SEC investigation but did not respond to the subpoena details. A separate filing dated October 2020 shows that the company has issued 6 million shares of restricted common stock “in subscription-free transactions”.
Marathon Electronic stock’s share price fell about 17% today to $ 63.07 as news of the subpoena hit major traders as well as stock prices from major crypto miners including Riot Blockchain, Bitfarms, Bit Digital and Hut 8 – a minus of 6%, 2%, 3% and 5%, respectively.
While stock prices can fall when BTC prices fall, data from Cointelegraph Markets Professional shows the crypto asset is only down about 2.4% today, reaching $ 63,798 at press time.
Related: Bitcoin miners rely on nuclear power for sustainable energy generation
Marathon Electronic announced today that it plans to buy more BTC and set up new crypto miners through a separate $ 500 million debt. Cointelegraph reported Nov. 3 that the company’s MARA stock hit a six-year high, with the miner amassing $ 460 million in bitcoin.