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Marathon Digital Served with Additional SEC Subpoena for Alleged Violations

Fredrik Vold
Last updated: | 1 min read
SEC building. Source: AdobeStock / Andriy Blokhin

Bitcoin (BTC) mining firm Marathon Digital has been served with an additional subpoena by the US Securities and Exchange Commission (SEC) over alleged securities laws violations.

The violations referred to in the subpoena are related to a mining facility built by Marathon Digital in Hardin, Montana in 2020.

To fund the construction of the mining facility, Marathon Digital the same year issued 6 million new shares in transactions that it says were “exempt from registration” under the Securities Act.

It is these transactions that the SEC is now demanding more information about.

The receipt of the new subpoena was confirmed by Marathon Digital in an SEC filing on Wednesday, with the firm saying they “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 firm added.

The new subpoena comes after Marathon Digital and some of its executives were first served with an SEC subpoena in 2021 “to produce documents and communications” regarding its Hardin, Montana facility.

New Abu Dhabi mining facilities

The news of the additional subpoena comes after Marathon Digital on Tuesday this week announced plans to build “the largest-ever” Bitcoin mining data center in the Middle East through a joint venture with Zero Two, a blockchain and digital assets infrastructure development company.

The newly formed Abu Dhabi Global Markets JV Entity will develop and operate two mining sites to begin with, with the sites said use immersion cooling to become “among the most technologically advanced and energy-efficient digital asset mining operations globally.”