Crypto Mining Stocks Drops As Marathon Digital Receives a Subpoena from SEC
In the wake of the subpoena issued by the SEC to Marathon Digital, the mining firm recorded a drop in stocks as did several other digital asset mining companies, such as Bitfarms and Riot Blockchain. Bitfarms stock prices dropped 2%, while Riot Blockchain share prices fell a whopping 6%. The biggest loser on Monday’s stock market was Marathon Digital, which saw its shares drop 17%.
It was obvious that the subpoena issued by the SEC caused havoc in the stock market prices of these mining firms. Although the subpoena wasn’t directed to other crypto mining firms but Marathon Digital, the news rocked their ships and caused a huge drop in their share prices.
What The SEC Subpoena Is All About
On Monday, the US SEC compelled Marathon to submit communications and other relevant files for its center in Montana after the commission received a report of possible violations of federal securities law. Before the recent subpoena, the regulatory body had told the cryptocurrency mining company to submit documents for the facility in Montana, for which the mining firm had revealed that it plans to develop and add mining equipment in October last year.
Marathon Digital disclosed to the press that it was working closely with the SEC regarding the investigation and the subpoena, but didn’t go ahead to reveal further details. The SEC revealed that the company had issued six million shares of restricted common stock in October last year. As a result of the subpoena, Marathon share prices fell 17% to $63.07.
On Monday, the company disclosed that it would acquire more Bitcoin and mining machines through the $500M debt offerings. The popular crypto mining firm revealed that its debt offering will offer initial purchasers an option to buy up to $75M principal amount of notes thirteen days from the first day of issuance. At press time, Marathon’s stocks rose more than 7%, trading at $75.9. In early this month, the company recorded a six-year high, realizing over $460M worth of BTC.
Marathon Digital is one of the biggest cryptocurrency mining companies in the United States. The company has been a key driver in the industry, initiating several BTC investment products, such as ETFs. Marathon’s stocks are used to track industry companies, such as Global Digital Miners Access ETF.
BTC Deepens As Price Goes Below $65K
Experts suggest that the drop in BTC prices on Monday may have contributed to the decline in share prices of crypto mining companies, although data confirms that the flagship cryptocurrency only dipped 2.4% to trade at $63k. As of the time of this writing, BTC is currently trading below $60.5k, which suggests a further decline in prices.
Tokenhell produces content exposure for over 5,000 crypto companies and you can be one of them too! Contact at info@tokenhell.com if you have any questions. Cryptocurrencies are highly volatile, conduct your own research before making any investment decisions. Some of the posts on this website are guest posts or paid posts that are not written by Tokenhell authors (namely Crypto Cable , Sponsored Articles and Press Release content) and the views expressed in these types of posts do not reflect the views of this website. Tokenhell is not responsible for the content, accuracy, quality, advertising, products or any other content or banners (ad space) posted on the site. Read full terms and conditions / disclaimer.
