Marathon Digital gets SEC subpoena for the second time

Major bitcoin (BTC) mining company Marathon Digital Holdings received a fresh subpoena from the US Securities and Exchange Commission (SEC) concerning the company’s data center in Montana, which the regulator is investigating for possible securities laws violation. 

Marathon Digital revealed the receipt of the subpoena in a recent filing with the SEC. According to the company, the subpoena was issued on April 10 to its data facility center in Hardin, Montana. 

“The Company received an additional subpoena from the SEC on April 10, 2023, relating to, among other things, transactions with related parties. We 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.

Marathon Digital SEC filing

The bitcoin miner and some of its executives received a similar subpoena two years ago in September 2021, with the SEC demanding documents and communications for the same data center facility. Marathon Digital first inked an agreement deal with multiple parties in October 2020 to set up the facility in Hardin, Montana. 

No plans to increase BTC holdings via the open market 

Meanwhile, the filing, which detailed Marathon Digital’s first quarter 2023 report, showed that the company’s revenue for Q1 2023 was $51,132, slightly lower than the $51,723 generated in Q1 2022. 

The quarterly report also stated that the firm’s entire bitcoin stash as of March 31, 2023, was 11,466 BTC, worth over $314 million at bitcoin’s current price, and produced a total of 2,195 BTC in the first quarter of 2023. 

Furthermore, Marathon Digital said it plans to increase its stash via production and not through BTC purchases on the open market, while stating that the firm “may buy and sell bitcoin from time-to-time (separately from what is outlined above) for treasury management purposes.” 

As previously reported by crypto.news, the bitcoin miner sold 1,500 BTC for the first time since 2019, to cater to operational costs.