SEC Extends Probe into Marathon Digital Holdings with New Subpoena

Share IT

Key takeaways:

  • The SEC issued a second subpoena to Marathon Digital Holdings concerning its inquiry into a data center in Montana.
  • On May 9, Marathon Digital announced that the new partnership with Zero Two would have offices in Masdar City and Mina Zayed, both in the United Arab Emirates.

The US Securities and Exchange Commission has issued another subpoena to bitcoin miner Marathon Digital about its 100-megawatt data center in Hardin, Montana. This information was made public by Marathon Digital.

The subpoena pertaining to, among other things, transactions with related parties that took place while it was building the facility in Montana was served on Marathon on April 10, according to its quarterly report submitted on May 10; it also stated:

“We understand that the SEC may be investigating whether or not there may have been any violations of the federal securities law. We are cooperating with the SEC.”

Marathon Digital has already been served with a second subpoena relating to the facility. Additionally, it got one late in the third quarter of 2021, in which the SEC demanded that the company turn over various records and correspondences pertaining to the Hardin, Montana, data center facility.

The SEC’s most recent subpoena serves as a reminder of the regulatory oversight that crypto companies—particularly those engaged in mining—must endure. In order to prevent legal and financial problems, it also emphasizes the necessity for businesses in the sector to have robust compliance practices.

Marathon Digital revealed the joint venture, which consists of two mining sites with a combined 250-megawatt capacity, will be headquartered in Mina Zayed and Masdar City in the United Arab Emirates on May 9. 

The company claims that Marathon and Zero Two want to use the extra energy from Abu Dhabi’s grid to power the facilities, increasing base load and sustainability. While mining in Abu Dhabi would often be impractical, Marathon Digital highlighted that its “custom-built immersion solution” would be adequate to keep the mining machines cool.

Zero Two and Marathon Digital will share ownership of the project, each holding 80% and the other 20%, respectively. By 2024, the two companies anticipate that their Abu Dhabi facilities will both be operational and produce a total hash rate of about 7 EH/s.

The announcement comes just two months after the Biden administration suggested a new tax for cryptocurrency miners based in the United States that would have required them to pay a tax equivalent to 30% of the expense of any electricity used while mining for cryptocurrency.

Share IT
Deep
Deep

Get Daily Updates

Crypto News, NFTs and Market Updates

Claim Your Free Trading Guide

Sign up for newsletter below and get your free crypto trading guide.

Can’t find what you’re looking for? Type below and hit enter!