Crypto Mining Stocks Plummet Amid SEC Issues a Subpoena to Marathon Digital Mining Facilities

U.S.-based cryptocurrency mining firm Marathon Digital Holdings Inc has received a subpoena from the U.S. Securities and Exchange Commission (SEC) regarding its Hardin, Montana data centre.

The document indicates that its Hardin data centre may violate the federal securities laws, so it received notifications to be investigated. The document is not without specific details. Marathon Digital said it will actively cooperate with the investigation of the U.S. Securities and Exchange Commission.

The mining company will produce documents and communications for the 100 MW facility and submit the relevant documents to the SEC.

As soon as the news was released, Marathon Digital's stock price had fallen by as much as 27.03%. The stock price fell from $72.59 at Monday's opening today to $55.40, with a rise or fall of $20.52.

Earlier this month, The shares of Nasdaq-listed American blockchain mining firm Marathon Digital have printed their highest price record in 6 months as the firm unveiled its Bitcoin mining performance for October.

On November 9, the stock price hit an all-time high of $83.45.

The share prices of other cryptocurrency mining companies, including Riot Blockchain, Bitfarms, Bit Digital, and Hut 8, also received ripples and closed down 4.75%, 2%, 2.21%, and 4.25%, respectively.

Earlier on Monday, the company announced that it would issue convertible senior notes ("notes") to qualified institutional buyers through private placement. The total amount is up to 500,000,000 U.S. dollars.

Marathon said it would give the initial purchaser the option of settlement for up to 13 days up to 75,000,000 US dollars in principal of the note can be purchased.

According to the official announcement, the notes issued this time are Marathon's senior unsecured debts. It will expire on December 1, 2026, with accrued interest paid every six months.

Last month, Marathon Digital Holdings Inc has obtained a $100 million revolving line of credit from Silvergate bank in Bitcoin and U.S. dollars.