Marathon Digital’s stocks fell 27% following an investigation by the US Securities Exchange Commission for an alleged breach of securities law.
The investigation pertains to Marathon’s effort for a Montana data facility, where the firm was to relocate its bitcoin mining center near Beowulf energy station.
The crypto mining firm struck a deal with Beowulf Energy last year to develop low-energy consuming mining solutions. In the deal, Beowulf would receive stocks from Marathon.
The SEC has heightened its scrutiny on digital assets in a push to bring market order with regulations that seem fit. Marathon’s subpoena comes after the commission’s chair Gary Gensler hinted at more crypto regulations.
The SEC continues to approve bitcoin ETFs despite opening lawsuits against crypto companies. Crypto companies have remained resilient against tightened regulations.