Marathon Digital Receives Second SEC Subpoena

Marathon Digital, a prominent Bitcoin miner, has disclosed the receipt of a second subpoena from the United States Securities and Exchange Commission (SEC) concerning its 100-megawatt data center in Hardin, Montana. The subpoena, issued on April 10, focuses on transactions that took place during the construction of the Montana facility.

According to Marathon’s May 10 quarterly report, the SEC is investigating potential violations of federal securities law. Despite this ongoing scrutiny, Marathon has stated that they are fully cooperating with the SEC.

The first SEC subpoena was received late in the third quarter of 2021, requiring the company to produce a range of related documents and communications. A spokesperson for Marathon declined to comment further on the matter.

Amidst this legal turmoil, Marathon has announced a major partnership with digital assets infrastructure company Zero Two. The joint venture aims to establish a large-scale Bitcoin mining facility in Abu Dhabi, set to feature two crypto mines with a combined 250-megawatt capacity.

Mining in Abu Dhabi’s climate would typically be unfeasible due to the intense heat, but Marathon’s “custom-built immersion solution” is expected to keep the mining rigs sufficiently cool. This venture marks a significant move in the crypto mining industry, especially following the Biden administration’s proposal for a new crypto miners’ tax, which would see miners paying a tax equivalent to 30% of the cost of electricity used during mining operations.