Shares of leading US crypto-mining company Marathon Digital Holdings (MARA) fell nearly 30% in 24 hours amid a recent crackdown by the country’s Securities and Exchange Commission (SEC).
MARA down 27% in 24 hours
Since Marathon is primarily a Bitcoin miner, the recent rise in the crypto market has had a positive effect on the company’s shares.
In the last month alone, the share of the miner, MARA, has increased by more than 40%. However, in the past 24 hours, stocks have fallen 27%.
In a recent filing, Marathon revealed that he had received a subpoena from the SEC, demanding that it and some of its executives submit all relevant documents and communications related to its Hardin, MT data center.
According to the file, the company noted that the SEC was likely trying to determine whether it had violated any laws under the Securities Act through its Hardin data center.
Marathon Hardin Data Center Project
In October of last year, Marathon partnered with several parties, including Beowulf Energy, to design and build a 100-megawatt data center in the small northern town of Hardin, Montana.
During this period, the company announced a joint venture with Beowulf for the Hardin Data Center, an agreement that saw the latter become a shareholder of Marathon. Additionally, as part of the deal, the Bitcoin miner issued approximately six million Marathon restricted common shares.
Speaking on the latest regulatory audits, Marathon said in the file, “We understand that the SEC may be investigating whether or not there are violations of federal securities law. We cooperate with the SEC.
However, the company has not disclosed any further details regarding the nature of the possible violation.
Marathon to buy more BTC
Meanwhile, ahead of the recent filing, Marathon revealed plans to raise $ 500 million by issuing its senior conversion notes, which will mature on December 1, 2026, unless they are redeemed, redeemed or converted beforehand. the due date.
The company noted that the funds will be for the purchase of more Bitcoin and Bitcoin mining equipment.
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