source : cryptopotato.com
Shares of the U.S. leading crypto mining company Marathon Digital Holdings (MARA) went on a downward spiral, plunging by nearly 30% within 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 bull run in the crypto market had a positive effect on the company’s stock.
In the past month alone, the miner’s stock, MARA, went up by more than 40%. However, the past 24 hours have seen the shares plunge by a massive 27%.
In a recent filing, Marathon revealed that it had received a subpoena from the SEC, demanding that it and some of its executives present all relevant documents and communications related to its Hardin, Montana data center facility.
As per the filing, the company noted that the SEC is likely trying to determine whether it broke any laws under the Securities Act through its Hardin Data Center.
Marathon’s Hardin Data Center Project
In October last year, Marathon partnered with multiple parties, including Beowulf Energy, to design and build a 100-megawatts data center in the small northern town of Hardin, Montana.
During that period, the company announced a joint venture with Beowulf for the Hardin Data Center, a deal that saw the latter become an equity shareholder of Marathon. Additionally, as part of the deal, the Bitcoin miner issued about six million restricted Marathon common shares.
Speaking on the latest regulatory checks, Marathon said in the filing, “We understand that the SEC may be investigating whether or not there may have been any violations of federal securities law. We are cooperating with the SEC.”
The company, however, did not disclose any further details regarding the nature of the possible violation.
Marathon to Buy More BTC
Meanwhile, before the recent filing, Marathon revealed its plans to raise $500 million by issuing its senior converter notes, which will be due Dec. 1, 2026, unless redeemed, repurchased, or converted before the due date.
The company noted that the funds will be geared toward purchasing more bitcoin and Bitcoin mining equipment.