Bitcoin mining : Marathon Digital under SEC scrutiny

Bitcoin (BTC) mining company Marathon Digital Holdings is also under scrutiny by the Securities and Exchange Commission (SEC), the US regulator.

For the record, Marathon Digital is one of the largest BTC mining firms in the world. In the first quarter of 2023, Marathon Digital announced a loss of $7.2 million. At the same time, the SEC issued a second injunction (subpoena) against this publicly traded bitcoin mining company.

The company said Wednesday that it reduced its losses in Q1 2023 compared to Q1 2022.

“The Company recorded a net loss of $7.2 million, or $0.05 per share, in the fiscal quarter ended March 31, 2023, compared to a net loss of $12.9 million, or $0.12 per share , in the prior year period ended March 31, 2022,” a statement read.

Another problem, the SEC!

As we all know, the SEC is on a crusade against the crypto sector. However, it is not only interested in crypto exchanges such as Beaxy, Bittrex, Kraken, or Nexo that it has already sued. The U.S. regulator also has Bitcoin (BTC) mining company Marathon Digital Holdings under its watch, to which it recently sent a second subpoena.

During the release of its financial results for the first quarter of 2023, Marathon Digital Holdings actually revealed that it received a new subpoena from the SEC on April 10, 2023, regarding its Montana data center that may have violated securities laws, according to the U.S. regulator.

“The company received an additional subpoena from the SEC on April 10, 2023, regarding, among other things, transactions with related parties. We understand that the SEC may be investigating whether there were violations of federal securities law. We are cooperating with the SEC.”

Fred Thiel, CEO of Marathon, said:

“After going through a tumultuous 2022 that tested the resilience of our industry as a whole, this year is off to a strong start as we increased our hash rate, reduced our mining costs, and improved our balance sheet during the first quarter.”

As the bitcoin mining company states in its financial report, it is cooperating with the SEC to certainly avoid any lawsuits, as many crypto companies may have experienced.

MARA, Marathon Digital Holdings’ stock price, is currently down 10% at $9.23.