Share prices of Marathon Digital stock fell, as did those from major crypto mining firms, including Riot Blockchain, Bitfarms, Bit Digital and Hut 8.
The United States Securities and Exchange Commission (SEC) has established crypto mining firm Marathon Digital Holdings to provide documents and communications for one of its mining plants in Montana.
As stated in a Monday filing with the SEC, Marathon Digital got a subpoena regarding an investigation into possible breaches of the federal securities law related to its Hardin, Montana data center. Moreover, in the third quarter of 2021, the SEC required the mining firm to produce documents and communications for the 100-megawatt facility. It had made adjustments to develop and stock with Bitcoin (BTC) miners in October 2020.
Marathon Digital share prices drop sharply
Marathon Digital stated it was interacting with the SEC’s investigation but did not mention the subpoena. A separate filing from October 2020 reveals the company issued 6 million shares of limited common stock in transactions excluded from registration.
Share prices of Marathon Digital stock fell approximately 17% on Monday to $63.07. This came as news of the subpoena encompassed significant outlets, as did those from major crypto mining firms. These include Riot Blockchain, Bitfarms, Bit Digital, and Hut 8, yielding 6%, 2%, 3%, and 5%, individually. The stock prices may decline when the cost of BTC drops. However, data from Cointelegraph Markets Pro displays that the crypto asset has only dropped approximately 2.4% on Nov. 15 to reach $63,798 at the time of publication.
Earlier on Monday, Marathon Digital stated it planned to purchase more BTC. Moreover, it will set up new crypto miners within a $500 million private debt offering. It was reported on Nov. 3 that the company’s MARA stock price touched a six-year high. The mining firm collected $460 million worth of Bitcoin.