SEC Serves Bitcoin Mining Firm Marathon Digital With Subpoena, Again
Bitcoin mining company Marathon Digital Holdings said it received a subpoena from the US Securities and Exchange Commission (SEC) related to alleged violations of securities laws.
“The company received an additional subpoena from the SEC on April 10, 2023, related to, among other things, related party transactions,” Marathon said in a filing Wednesday. “We understand that the SEC may be investigating whether there may have been any violations of the federal securities laws.”
Marathon said it is “cooperating with the SEC” on the matter, which is related to the data center facility in Hardin, Montana.
The company first disclosed that it had received a subpoena from the SEC in November 2021.
Marathon has specified that its “disclosure controls and procedures were not effective at a reasonable assurance level as of March 31, 2023,” with material weaknesses discovered that create “a reasonable possibility that a material misstatement in our consolidated financial statements or disclosures would not have been prevented or detected in time.”
According to the company, these significant weaknesses relate to “four specific accounting areas, including consolidation, impairment of digital assets, disposal of property and equipment, and principal versus agent considerations in revenue recognition.”
Marathon did not immediately respond Decrypt their request for comment.
Marathon’s financial results for the first quarter of 2023
Along with the SEC filing, Marathon has also released its financial results for the first quarter.
The company said it posted a net loss of $7.2 million, or $0.05 per share, during the fiscal quarter ended March 31, 2023, compared with a net loss of $12.9 million, or $0. 12 dollars per share, in the period before the year ended. 31 March 2022.
Marathon’s revenue was $51.1 million for the quarter, down slightly from $51.7 million a year earlier, and the firm said “the increase in Bitcoin production was more than offset by lower Bitcoin prices in the current year period.”
Overall, with a hash rate of 15.4 EH/s, Marathon produced a record 2,195 Bitcoin in Q1 2023, a 74% increase from 1,259 Bitcoin in Q1 2022, while reporting gains from the sale of Bitcoin of $17.6 million as a result of the program aimed at financing the firm’s operating costs.
“After weathering a turbulent 2022 that tested the resilience of our entire industry, this year is off to a strong start as we increased our hash rate, reduced our cost to mine and improved our balance sheet during the first quarter,” Fred Thiel, Marathon’s chairman and CEO said in a statement.
The company added that it “remains on track” to reach its hash rate target of 23 EH/s, hoping to reach it “near the middle of this year.”
Marathon’s stock ( MARA ) was up nearly 9% at $10.22 at the closing bell Wednesday.
