Marathon Digital Receives Second SEC Subpoena Related to Montana Data Center
The stock price of Marathon Digital, a cryptocurrency miner, has dropped to $27,467 after the company disclosed that it received another subpoena from the United States Securities and Exchange Commission (SEC) regarding its 100-megawatt data center in Hardin, Montana. This is the second subpoena that Marathon Digital has received in relation to the facility.
Details of the Subpoena
According to Marathon Digital’s quarterly report filed on May 10, the subpoena was received on April 10, and is “relating to, among other things, transactions with related parties” that occurred while it was creating the facility in Montana. The report also stated:
“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 previously received a subpoena late in the third quarter of 2021 from the SEC, which ordered the firm to produce a number of related documents and communications.
New Partnership Announced with Zero Two
On May 9, Marathon Digital announced that it had partnered with digital assets infrastructure company Zero Two to create a large-scale immersion Bitcoin mining facility in Abu Dhabi. The facility would consist of two mining mines with a combined 250-megawatt capacity, and Marathon noted that while mining in Abu Dhabi would normally be infeasible, its “custom-built immersion solution” would be sufficient to ensure the mining rigs remained cool.
New Tax for Crypto Miners Proposed
The announcement of the new partnership comes just two months after the Biden administration proposed a new tax for crypto miners operating in the U.S., which would require them to pay a tax equal to 30% of the cost of any electricity used while mining for crypto. This proposal has been met with criticism from the crypto community.
Conclusion
It remains to be seen how the SEC’s investigation will affect Marathon Digital’s business, but the company has stated that it is cooperating with the regulatory body. The new partnership with Zero Two could provide a new revenue stream for the company, but the proposed tax on crypto miners in the U.S. could impact the profitability of the industry as a whole.
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