Crypto mining stocks crashes as SEC issues subpoena for Marathon Digital mining facility

Share prices of Marathon Digital inventory dropped, as did these from fundamental crypto mining firms including Riot Blockchain, Bitfarms, Bit Digital and Hut 8.

The United States Securities and Exchange Commission (SEC) has ordered crypto mining association Marathon Digital Holdings to produce files and communications for one of its mining amenities in Montana.

According to a Monday submitting with the SEC, Marathon Digital acquired a subpoena related to an investigation into possible violations of the federal securities regulation related to its Hardin, Montana information center. In the third quarter of 2021, the SEC ordered the mining company to produce archives and communications for the 100-megawatt facility, for which it had made preparations to strengthen and stock with Bitcoin (BTC) miners in October 2020.

Marathon Digital said it was cooperating with the SEC’s investigation but did no longer go into details regarding the subpoena. A separate submitting from October 2020 shows the corporation issued 6 million shares of limited common stock “in transactions exempt from registration.”

Share expenditures of Marathon Digital stock dropped roughly 17% on Monday to $63.07 as information of the subpoena reached important outlets, as did those from fundamental crypto mining firms, together with Riot Blockchain, Bitfarms, Bit Digital, and Hut 8 — falling 6%, 2%, 3%, and 5%, respectively.

Though the stock expenditures can also fall when the rate of BTC dropped. The data received from various analysts suggests that the crypto asset has only dipped roughly 2.4% on Nov. 15 to reach $63,798 at the time of publication.

Earlier on Monday, Marathon Digital announced it was planning to purchase extra BTC and set up new crypto miners through a $500 million personal debt offering.

 

Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

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