Bitcoin mining firm Marathon Digital Holdings has announced that it has received a subpoena from the U.S. Securities and Exchange Commission (SEC) in connection with alleged violations of securities laws.
“On April 10, 2023, we received an additional subpoena from the SEC specifically related to related party transactions,” Marathon said. filing Wednesday. “We understand that the SEC may be investigating whether there were any violations of federal securities laws.”
Marathon said it is “cooperating with the SEC” on the issue involving its data center facility in Hardin, Montana.
The company first disclosed that it received a subpoena from the SEC in November 2021.
Marathon said that “disclosure controls and procedures were not effective with a reasonable level of assurance as of March 31, 2023,” and that the discovery of the material weaknesses resulted in “a material impact on our consolidated financial statements and disclosures.” “There was a reasonable possibility that misrepresentation would not be prevented.” Or detected in a timely manner. ”
According to the company, these material weaknesses relate to “four specific accounting areas, including consolidation, digital asset impairments, property, plant and equipment disposals, and principal versus agency considerations in revenue recognition.” .
Marathon did not react immediately Decryption Request for comments.
Marathon Q1 2023 Financial Results
In addition to filing with the SEC, Marathon also released its first quarter report. settlement.
The company reported a net loss of $7.2 million ($0.05 per share) during the fiscal quarter ended March 31, 2023, compared with a net loss of $12.9 million ($0.12 per share) in the same period last year. increased compared to the net loss of March 31, 2022.
Marathon’s revenue for the quarter was $51.1 million, down slightly from $51.7 million in the same period last year, and the company said that “increase in bitcoin production was more than offset by the decline in the bitcoin price this year.” Stated.
Overall, Marathon, which currently boasts a hash rate of 15.4 EH/s, produced a record 2,195 Bitcoins in Q1 2023. This is a 74% increase from his 1,259 BTC in Q1 2022. It also reported a gain on the sale of Bitcoin of $17.6 million. It is the result of a program intended to fund the company’s operating expenses.
“After weathering a turbulent 2022 that tested the resilience of the industry as a whole, this year is off to a strong start as hashrate increased, mining costs decreased and our balance sheet improved in the first quarter. “It was a great experience,” said Fred Thiel. Marathon’s Chairman and CEO said in a statement:
The company added that it is “on track” towards achieving its 23 EH/s hashrate target, adding that it expects to achieve it “near the middle of the year.”
Marathon stock (MARA) rose almost 9% at $10.22 At the closing bell on Wednesday.
