Marathon Digital Holdings, Inc.
The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the District of Nevada on behalf of those who acquired Marathon Digital Holdings, Inc. f/k/a Marathon Patent Group, Inc.(“Marathon” or the “Company”) (NASDAQ: MARA) securities from October 13, 2020 through November 15, 2021, inclusive (the “Class Period”). Investors have until February 15, 2022 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
Marathon is a digital asset technology company that mines cryptocurrencies with a focus on the blockchain ecosystem and the generation of digital assets in U.S.
In October 2020, Marathon announced the formation of a new joint venture with Beowulf Energy LLC (“Beowulf”) purportedly focused on delivering low-cost power to Marathon’s Bitcoin mining operations (the “Beowulf Joint Venture”). In connection with that joint venture, Marathon entered into a series of agreements with multiple parties to design and build a data center in Hardin, Montana (the “Hardin Facility”), issuing 6 million shares of its common stock to the parties of those agreements.
On November 15, 2021, Marathon disclosed that “[d]uring the quarter ended September 30, 2021, the Company and certain of its executives received a subpoena to produce documents and communications concerning the Hardin, Montana data center facility[,]” and advised that the U.S. Securities and Exchange Commission (“SEC”) “may be investigating whether or not there may have been any violations of the federal securities law.” On this news, Marathon’s stock price declined by $20.52 per share, or approximately 27.03%, from $75.92 per share on November 12, 2021 to close at $55.40 per share on November 15, 2021.
The lawsuit alleges throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that: (i) the Beowulf Joint Venture, as it related to the Hardin Facility, implicated potential regulatory violations, including U.S. securities law violations; (ii) as a result, the Beowulf Joint Venture subjected Marathon to a heightened risk of regulatory scrutiny; (iii) the foregoing was reasonably likely to have a material negative impact on the Company’s business and commercial prospects; and (iv) as a result, the Company’s public statements were materially false and misleading at all relevant times.