Marathon Digital Fined $138 Million for Contract Breach

Marathon Digital, the largest mining company in the United States, has been fined $138 million for breaching a non-circumvention agreement. This was reported by Cointelegraph. 

According to a press release from the law firm Affeld England & Johnson, the jury unanimously ruled in favor of Michael Ho, founder of US Bitcoin Corp and Chief Investment Officer of Hut 8.

In 2020, Marathon’s management devised a growth strategy, which included launching a large-scale bitcoin mining operation in North America. The company implemented Ho’s ideas without compensating him for the confidential information provided.

David Affeld, a partner at the law firm, noted that the court’s decision underscores the importance of honoring commitments and choosing the right business partners.

“This is a strong signal that ethical business practices are not optional but a necessity,” he added.

Marathon remains the largest mining company by market capitalization, valued at $6.99 billion. The firm significantly outpaces its nearest competitors, CleanSpark ($4.1 billion) and Riot Blockchain ($3.5 billion).

In April, the company announced plans to increase its hashrate to 50 EH/s by the end of 2024.

In November 2023, Marathon commenced mining operations at a facility in Paraguay and launched a pilot project for mining digital gold using landfill gas energy.

The company operates a joint venture in Abu Dhabi and has invested $80 million in green bitcoin mining in Kenya. The firm is also participating in an experimental project in Finland to heat homes using the heat generated from mining the first cryptocurrency.