As the SEC's crackdown on the cryptocurrency industry continues, the SEC's latest victim has been Marathon Digital, one of North America's largest public crypto miners.
Stating that it received a subpoena from the SEC in its first quarter report, Marathon Digital said that this subpoena was related to the company's facilities in Montana.
The SEC sent the subpoena on the grounds that Marathon Digital's Montana facilities may have violated securities laws in its operations.
Marathon Digital said in its statement:
“On April 10, 2023, the company received an additional subpoena from the SEC regarding the facilities in Montana.
We understand that the SEC may be investigating whether federal securities law has been violated. We're cooperating with the SEC."
This is not the first subpoena the SEC has sent Marathon Digital regarding its Montana facilities. Because the SEC sent a subpoena to the company in the third quarter of 2021 for the same reason.
Marathon Digital, one of the largest publicly traded cryptocurrency mining companies in the US, holds a large amount of Bitcoin on its balance sheet. Apart from that, the stocks of Marathon Digital closely follow the movements in the BTC price and move in parallel.
Announcing its first quarter 2023 report yesterday, Marathon Digital reported a net loss of $7.2 million for the first quarter. The company reported a net loss of $12.9 million in the same period of 2022.
While it is seen from the report announced yesterday that the company has reduced its loss, the company's stock MARA closed yesterday with an increase of about 9%, above 10 dollars.
*Not investment advice.
