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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. 

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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. 

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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. 

📰 Also read:  JPMorgan Warns Adding Leverage into Bitcoin Markets to Cause Severe Deleveraging During Correction

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Shelly Melancon (Switzerland)

Shelly is a cryptocurrency enthusiast from Switzerland, she bought her first crypto in 2015 when it was way less popular then it is today and since 2017 she has been writing about cryptocurrency for online news portals. Shelly is the newest addition to the Tokenhell team, she writes mostly news and reviews related articles , stay tuned to her posts to stay up to date with the crypto world.

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