2021-11-16 17:17 |
Marathon Digital Holdings (MARA) tumbled 27% to trade at $55.40 but is still up about 404% YTD.
This drop in MARA shares came after the cryptocurrency mining company disclosed that it received a subpoena from the US Securities and Exchange Commission (SEC) related to a partnership for a Montana data facility.
In early October 2020, the bitcoin miner entered into a series of agreements with multiple parties to build a data center for up to 100-megawatts in Hardin. As part of the deal, it issued 6 million of restricted Marathon common shares at the time. It also announced a joint venture with Beowulf Energy to become an equity shareholder for Marathon for the Hardin data center.
The company acknowledged that the SEC is investigating whether Marathon Digital Holdings has violated federal securities law in its quarterly filing.
The agency has asked Marathon to produce documents and communications concerning the facility in Hardin, Montana. Marathon said it is cooperating with the investigation.
On Monday, the firm also announced plans to sell $500 million in convertible securities to buy more Bitcoin and bitcoin miners.
According to Compass Mining, Marathon holds a total of 7,453 Bitcoin as of October, and much like other miners, employs HODL strategy for all the BTC that it is mining. Last month, Marathon mined 418 Bitcoin, 100% of which was allocated to its Bitcoin treasury.
Marathon currently holds substantially more Bitcoin than its peers, thanks to purchasing 4,813 BTC at an average price of $31,168 in January.
Meanwhile, China is yet again warning about crypto mining, this time its own state-owned enterprises, to get out of it. The National Development and Reform Commission (NDRC) is planning to crack down on industrial-scale bitcoin mining.
The NDRC spokeswoman Meng Wei said they are considering imposing punitive measures in the form of higher power prices on companies that continue to mine crypto.
The nation’s chief economic planner held a special meeting on the issue last week and is putting a bigger responsibility on provinces and municipalities to investigate and clean up those involved in mining.
Bitcoin BTC $ 60,907.76 +0.26% -5.75% -9.23% baseUrl = "https://widgets.cryptocompare.com/"; var scripts = document.getElementsByTagName("script"); var embedder = scripts[scripts.length - 1]; var cccTheme = {"Chart": {"fillColor": "rgba(248,155,35,0.2)", "borderColor": "#F89B23"}}; (function () { var appName = encodeURIComponent(window.location.hostname); if (appName == "") { appName = "local"; } var s = document.createElement("script"); s.type = "text/javascript"; s.async = true; var theUrl = baseUrl + 'serve/v1/coin/chart?fsym=BTC&tsym=USD'; s.src = theUrl + (theUrl.indexOf("?") >= 0 ? "&" : "?") + "app=" + appName; embedder.parentNode.appendChild(s); })(); See Details The post SEC Investigating Bitcoin Miner, Marathon Digital Holdings, Regarding Violation of Federal Securities Law first appeared on BitcoinExchangeGuide.Similar to Notcoin - Blum - Airdrops In 2024