Digital Marathon Bitcoin Mining Company Gets Call From SEC

Bitcoin Marathon Digital Holdings mining company. (Photo; Dok Cryptotimes)

JAKARTA - Bitcoin mining giant Marathon Digital Holdings Inc. reportedly received a court summons from US regulators, the Securities and Exchange Commission (SEC).

The SEC summons are based on alleged violations of federal securities laws. The SEC is investigating whether the company violated the Securities Act of 1933 registration requirements, and has requested documents related to the recent company's securities public offering.

On the other hand, receiving a court summons does not necessarily mean that the recipient of the summons has committed a crime, but rather shows that the SEC is interested in starting an investigation.

Despite this, Marathon Digital reported its outstanding performance in Q1 2023, announcing the highest production month-to-month in March, mining a total of 825 BTC. In addition, the company noted that its Hashrate had increased 64 percent in Q1 2023 to 11.5 EH/s by the end of March.

As reported by CoinSpeaker, Marathon Digital sold Bitcoin which it mined in February and reported having positive cash flow with an unconstrained total cash and cash equivalent of US$124.9 million (Rp1.8 trillion).

Marathon Digital Holdings had previously received a court call from the SEC in early 2021, requesting documents and information relating to its data center facility in Montana.

The company is working with the SEC to provide the requested information, highlighting that they are dedicated to complying with all relevant laws and regulations. However, the company cannot predict the outcome of a possible investigation or regulatory action.

Securities Act of 1933 requires companies to register with the SEC and provide investors with information such as financial reports, risk considerations, and other related data. Marathon Digital Holdings has announced that they are working together to ensure that they comply with relevant laws and regulations, and provide the requested information to the SEC.

To date, Marathon Digital Holdings has not disclosed potential regulatory action that may arise from the investigation.