Nasdaq-listed mining company Marathon Digital Holdings has announced an ongoing investigation into it by the U.S. Securities and Exchange Commission (SEC). Therefore, the firm’s stock prices reacted with a collapse.
Thus, the closing price on Monday, November 15, was $75.92. Marathon papers are currently priced on the premarket at $55.40 — about 27% lower.
In a Form 10-Q report filed with the SEC, the firm stated: “During the quarter ended September 30, 2021, the company and some of its executives received subpoenas to provide documents and information related to the data center in Hardin, Montana.”
“We are cooperating with the SEC”
Marathon stressed the understanding that the Commission can investigate possible violations of federal securities laws. “We are cooperating with the SEC,” the company said.
Earlier, Marathon reported a successful third quarter. In three months, the firm produced 1,254.4 BTC, which is 91% more than in the second quarter. The company’s cryptocurrency reserves reached 7,035 BTC, including 4,812.66 BTC acquired in January.
On November 15, Marathon announced the placement of convertible bonds in the amount of $500 million. The company promised to use the funds for additional purchases of Bitcoin and equipment for its production. Furthermore, the company announced an increase in the supply of debt securities to $650 million.
$100M credit line from Silvergate Bank
Recall that in October, Silvergate Bank issued a $100M credit line to Marathon Digital. “While the rate at which we accept miners has fluctuated in the past and may continue to do so in the near future, we are optimistic that, by halfway through 2022, we will be able to increase our hash rate to 13.3 EH/s.” Marathon Digital CEO Fred Thiel remarked.
Such investment giants as BlackRock and Fidelity Investments are among the owners of Marathon shares.
BlackRock possessed a 6.71% share in Marathon Digital as of June 30. And Fidelity Investments bought a 7.4% interest for $20 million in July.