Marathon
Digital Holdings, Inc., the largest Bitcoin mining company by market
capitalization, has been ordered to pay $138 million in damages following a
unanimous jury verdict in a breach of contract lawsuit.
The
verdict, issued in a federal court, concluded that Marathon had breached a
non-disclosure, non-circumvention agreement with Michael Ho, the Chief Strategy
Officer of Marathon’s direct competitor, Hut 8.
According
to court documents, Ho entered into an agreement with Marathon in 2020 to
provide proprietary information regarding a large-scale energy supplier for the
company’s mining operations. The agreement stipulated that Marathon would not
circumvent Ho by directly engaging with the supplier without compensation.
The lawsuit
alleged that Ho had developed a growth strategy for Marathon, including plans
for a large-scale Bitcoin mining facility in North America. Marathon was
accused of executing this strategy without compensating Ho for the proprietary
information he provided.
“The
unanimous jury verdict for $138 million vindicates Michael Ho’s efforts and
expertise, and it reinforces the importance of honoring contractual obligations
and respecting professional relationships,” explain David Affeld from Affeld
England & Johnson LLP, who represented Ho.
MARA Shares Show Little
Reaction to Multimillion-Dollar Fine
Despite the
substantial financial setback, Marathon Digital remains the world’s largest
Bitcoin mining firm by market capitalization, valued at approximately $6.77
billion. The company recently reported that it doubled its operational hashrate
year-over-year to 26.3 exahashes per second in June.
Wall Street investors responded little to news of the multimillion-dollar
fine. During Monday’s trading session, Marathon’s shares (NASDAQ: MARA) fell by
3% to just under $24, maintaining levels close to four-month highs. However,
before today’s session began, they lost an additional 2% in pre-market trading,
testing the level of $23.46.
Source: Yahoo Finance
Last year, the company’s revenue increased by 229%, reaching a record high of $388 million. Its net income saw a substantial increase, reaching $261.2 million, equivalent to $1.06 per diluted share, which marked a significant recovery from the loss reported the previous year. Additionally, the adjusted EBITDA grew notably, totaling $419.9 million.
For comparison, the
second-largest crypto miner listed on Wall Street, also on NASDAQ, Riot
Platforms, has a significantly smaller market capitalization of around $3.2
billion,
Marathon
Digital Holdings, Inc., the largest Bitcoin mining company by market
capitalization, has been ordered to pay $138 million in damages following a
unanimous jury verdict in a breach of contract lawsuit.
The
verdict, issued in a federal court, concluded that Marathon had breached a
non-disclosure, non-circumvention agreement with Michael Ho, the Chief Strategy
Officer of Marathon’s direct competitor, Hut 8.
According
to court documents, Ho entered into an agreement with Marathon in 2020 to
provide proprietary information regarding a large-scale energy supplier for the
company’s mining operations. The agreement stipulated that Marathon would not
circumvent Ho by directly engaging with the supplier without compensation.
The lawsuit
alleged that Ho had developed a growth strategy for Marathon, including plans
for a large-scale Bitcoin mining facility in North America. Marathon was
accused of executing this strategy without compensating Ho for the proprietary
information he provided.
“The
unanimous jury verdict for $138 million vindicates Michael Ho’s efforts and
expertise, and it reinforces the importance of honoring contractual obligations
and respecting professional relationships,” explain David Affeld from Affeld
England & Johnson LLP, who represented Ho.
MARA Shares Show Little
Reaction to Multimillion-Dollar Fine
Despite the
substantial financial setback, Marathon Digital remains the world’s largest
Bitcoin mining firm by market capitalization, valued at approximately $6.77
billion. The company recently reported that it doubled its operational hashrate
year-over-year to 26.3 exahashes per second in June.
Wall Street investors responded little to news of the multimillion-dollar
fine. During Monday’s trading session, Marathon’s shares (NASDAQ: MARA) fell by
3% to just under $24, maintaining levels close to four-month highs. However,
before today’s session began, they lost an additional 2% in pre-market trading,
testing the level of $23.46.
Source: Yahoo Finance
Last year, the company’s revenue increased by 229%, reaching a record high of $388 million. Its net income saw a substantial increase, reaching $261.2 million, equivalent to $1.06 per diluted share, which marked a significant recovery from the loss reported the previous year. Additionally, the adjusted EBITDA grew notably, totaling $419.9 million.
For comparison, the
second-largest crypto miner listed on Wall Street, also on NASDAQ, Riot
Platforms, has a significantly smaller market capitalization of around $3.2
billion,
