Cryptocurrencies

Crypto Miner Marathon Tumbles After SEC Subpoena Disclosed

Share slide on Monday was the largest since November 2017
Marathon also plans to sell a convertible debt issue

Fred Thiel, chief executive officer of Marathon Digital Holdings, during the Bitcoin 2021 conference in Miami, on June 5, 2021. — Fred Thiel, chief executive officer of Marathon Digital Holdings, during the Bitcoin 2021 conference in Miami, on June 5, 2021.
Photographer: Eva Marie Uzcategui/Bloomberg

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By Crystal Kim and Rick Green

November 15, 2021 at 3:46 PM UTC

Updated on

November 15, 2021 at 9:52 PM UTC

This article is for subscribers only.

Shares of Marathon Digital Holdings Inc. tumbled 27% after the cryptocurrency mining company disclosed that it received a subpoena from the U.S. Securities and Exchange Commission related to a partnership for a Montana data facility.

In a quarterly filing, Marathon acknowledged the subpoena asking it to produce documents and communications concerning the facility in Hardin, Montana, a venture formed with Beowulf Energy in October 2020. The SEC may be investigating whether there were violations of securities law, the Las Vegas-based company said. The firm also announced plans to sell $500 million in convertible securities.