Marathon Digital, a Bitcoin mining company, has disclosed that it received another subpoena from the United States Securities and Exchange Commission (SEC) relating to its 100-megawatt data center in Hardin, Montana. This subpoena, received on April 10, is related to transactions with related parties that occurred while Marathon was creating the facility in Montana. The SEC is investigating whether or not there may have been any violations of federal securities law. Marathon has stated that it is cooperating with the SEC.
This is not the first subpoena that the Company has received regarding the facility. It received another subpoena late in the third quarter of 2021 in which the SEC ordered the firm to produce a number of related documents and communications. Marathon has not disclosed the reason for the subpoenas.
Marathon to create a large-scale immersion BTC mining facility
On May 9, Marathon announced a partnership with digital assets infrastructure company Zero Two to create a large-scale immersion Bitcoin mining facility in Abu Dhabi. The facility will consist of two mining mines with a combined 250-megawatt capacity. Mining in Abu Dhabi would normally be infeasible due to the heat, but Marathon’s custom-built immersion solution will keep the mining rigs cool.
This announcement comes just two months after the Biden administration proposed a new tax for crypto miners operating in the U.S. The proposed tax would require crypto miners to pay a tax equal to 30% of the cost of any electricity used while mining for crypto. This tax proposal has not yet been implemented, but it has raised concerns among crypto miners and investors.
Marathon is one of the largest Bitcoin mining companies in the U.S. and has been expanding its operations rapidly. The company recently announced plans to increase its mining capacity to 13.3 exahashes per second (EH/s) by the end of the first quarter of 2022. Marathon’s expansion plans and partnership with Zero Two suggest that the company is positioning itself for growth and diversification in the crypto-mining industry.
The SEC’s investigation and the proposed tax on crypto mining operations in the U.S. highlight the regulatory and financial risks associated with the crypto industry. While crypto has become increasingly popular and mainstream in recent years, it remains a highly volatile and unpredictable market. Investors and companies operating in the industry must be prepared to navigate these risks and uncertainties.
