Home
News
- 1 Subpoena issued by the U.S. Securities and Exchange Commission on suspicion of related party transactions by Marathon.
- 2 Second such Subpoena received by Marathon and its executives, the first in September last year
- 3 Marathon shows strong quarterly results as it reduces loss per share and mines 2195 Bitcoins worth $80 million dollars
Due to a Potential Violation of Securities laws, Marathon Digital, which is a Bitcoin Mining company, has received a subpoena from the U.S. Securities Exchange and Law Commission in relation to their ongoing investigation of the Montana data centre.
Marathon Digital explained on Wednesday, May 10 that the SEC issued a subpoena against them on April 10, 2023, on suspicion of entering into a related party transaction. The company further said that the SEC has doubts about whether they have violated any law and that they are cooperating with the SEC.
The company and its executives already received their first subpoena in the quarter ending September 2021. After restarting its annual report the Bitcoin Mining company said in February this year that accounting errors dating back to several quarters were found in the report and that the firm received comments from the US Securities regulator.
Marathon Digitals Operations
As per computing power Marathon Digital is one of the biggest largely traded companies in the US. Marathon’s stock price is in close sync with the price of Bitcoin.
Marathon Digital is a Bitcoin mining company and hence it holds a lot of BTC in its Balance sheet. Although just like the retailers, Marathon offloaded some of its Bitcoins during the time that was known as the “Crypto Winter” to meet its operational cost. Data shows that earlier this year in January Marathon sold twice more Bitcoins than it minted in that period.
Although after this the company shared some positive news where they said that they have reduced net loss to $0.05 per share in comparison to $0.12 last quarter. The company also saw a boost in revenue in this quarter close to $50 million in comparison to the $28.4 million they made last quarter.
Fred Thiel, Chairman and CEO of Marathon said that the company mined almost 2195 Bitcoins worth $80 million and considers this quarter as a strong start. Marathon has further reported that its operational hash rate has increased 64% quarter on quarter to 11.5 EH/s.
In any case, with the bitcoin cost making monstrous additions this year ever since the “Crypto Winter” has ended, the MARA stock is now up by over 200% year-to-date. The stock price is almost flat on the annual chart. This demonstrates that Marathon has been successful in regaining the price of its stock that it lost during the crypto winter of 2023.
Crypto mining operations for Marathon in Dubai
Abu Dhabi Global Markets JV Entity, which has been newly formed, will develop and operate two digital asset mining sites both having a combined capacity of 250 megawatts. Marathon and Zero will be leveraging excess energy to power the sites. This will also help in increasing Abu Dhabi’s base load and sustainability grid. Any non-sustainably produced electricity will be offset by Marathon and Zero Two with clean energy certificates.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
