Marathon shares slide after SEC investigation

Nasdaq-listed mining company Marathon Digital Holdings said it is the subject of an investigation by the U.S. Securities and Exchange Commission (SEC). The company’s shares tumbled in response.

The closing price on Monday, November 15, was $75.92. At the time of writing, in premarket trading Marathon shares were around $55.42 — roughly 27% lower.

In the SEC filing Form 10-Q, the company stated:

«During the quarter ended September 30, 2021, the company and some of its executives received subpoenas seeking documents and information related to the data center in Hardin, Montana».

Marathon said it understood the Commission may be investigating potential violations of federal securities laws.

«We are cooperating with the SEC,» the company said.

Earlier Marathon reported a strong third quarter. In three months the company mined 1,254.4 BTC, up 91% from the second quarter. The company’s cryptocurrency reserves stood at 7,035 BTC, including 4,812.66 BTC acquired in January.

On November 15 Marathon announced a $500 million convertible-bonds offering. Proceeds are to be used for additional Bitcoin purchases and equipment for its mining operations.

Subsequently the company announced an increase in debt offerings to $650 million.

Noting that among Marathon’s shareholders are investment giants such as BlackRock and Fidelity Investments.

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