Marathon Digital, the second-largest bitcoin mining company in North America, has announced that it received a subpoena from the US Securities and Exchange Commission (SEC) in connection with an ongoing investigation into potential violations of federal securities laws. The investigation centers on a bitcoin mining farm located in Montana, which Marathon has been involved with.
According to a filing made by Marathon on Wednesday, the company received a subpoena from the SEC on April 10, 2023. The subpoena requested information related to “transactions with related parties,” suggesting that the investigation may be focusing on potential conflicts of interest involving the Montana data center.
“We understand that the SEC may be investigating whether or not there may have been any violations of the federal securities law,” Marathon stated in the filing. “We are cooperating with the SEC.”
This is not the first time that Marathon has been targeted by the SEC. Last year, the agency launched an investigation into the company’s financial disclosures, focusing on its use of non-standard accounting measures to calculate its bitcoin mining profitability. Marathon later restated its financials for 2022, resulting in a $170 million reduction in its previously reported revenue.
Marathon is one of the largest bitcoin mining companies in North America, with operations in Montana and Texas. The company has been expanding rapidly in recent years, as the price of bitcoin has surged, and demand for mining equipment and services has increased.
This latest subpoena from the SEC highlights the ongoing regulatory scrutiny that the crypto industry is facing in the US. With the SEC and other agencies ramping up their efforts to investigate potential securities violations and other issues related to cryptocurrencies, companies like Marathon will need to remain vigilant and ensure that they are fully compliant with all relevant regulations.
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