Marathon Digital (NASDAQ:MARA) had a bumpy ride today, initially gaining as much as 6% before falling into the red. This comes as the company announced it was expanding a partnership with Compute North to host its Bitcoin (CCC:BTC-USD) mining machines across the U.S. MARA stock initially popped on confirmation that Compute North agreed to host 100,000 of its mining rigs.
The digital asset company touts that it is one of the most environmentally friendly crypto mining firms. Its partnership with Compute North promises to further that.
In fact, with its responsibility for hosting the mining facilities and deploying new rigs, Compute North will help Marathon continue to grow. And in terms of environmental consciousness, the new rigs will be primarily powered by wind and solar energy. As a result, Marathon says its operations will be roughly 77% carbon neutral. It also said its additional mining power will be in motion by mid-2022.
Unfortunately, it’s not the only news making headlines for Marathon today.
Will Legal Troubles Spoil the Party for MARA Stock?
While MARA closed trading today just below the break-even point, legal troubles seem determined to throw Marathon off its course. Marathon is the subject of recent investigations, including a subpoena from the U.S. Securities and Exchange Commission. The company commented on the investigation in a recent SEC filing:
“During 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 described in our Form 8-K dated October 13, 2020. We understand that the SEC may be investigating whether or not there may have been any violations of the federal securities law. We are cooperating with the SEC.”
This morning, the Schall Law Firm announced an investigation into claims made on behalf of Marathon investors for potential violation of securities law. Legal news is rarely good for any stocks involved and it’s no different here.
As evident today, legal woes will likely continue to outweigh any positive news for Marathon in the near term. However, should the investigations resolve, MARA is a prime candidate for a bounce back. Its aggressive and sustainable approach to Bitcoin mining is a testament to that.
On the date of publication, Shrey Dua did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
