Marathon Digital executives received a subpoena from the Securities and Exchange Commission (SEC) to produce documents and communications concerning its Hardin, Mont. data center facility, the company said in a 10Q filing on Monday.
- The SEC is investigating whether Marathon Digital has been in violation of federal securities law.
- Marathon Digital said it was cooperating with the investigation, without specifying the nature of the possible violations.
- On Oct. 6, 2020, the bitcoin miner entered into a series of agreements with multiple parties to design and build a data center for up to 100-megawatts in Hardin, a small town in the northern part of the state, and issued 6 million of restricted Marathon common shares as part of the deal.
- Last October, Marathon announced a joint venture with Beowulf Energy for the Hardin data center, where Beowulf will also become an equity shareholder of Marathon.
- Marathon shares were down more than 12% on Monday, underperforming all crypto mining peers.
- Earlier on Monday, the bitcoin miner said it will raise $500 million in senior convertible notes to buy more bitcoin and bitcoin miners.
