The largest Bitcoin miner Marathon Digital (NASDAQ: MARA) has been slapped $139 million in fine against the charges of breach of a non-disclosure agreement. This happened as the Bitcoin miner lost a jury verdict against Michael Ho, the former co-founder of US Bitcoin Corp and the chief strategy officer of mining company Hut 8.

Marathon Digital Breaches Agreement, MARA Stock Tanks 2.5%

In the official press release, Affeld England & Johnson LLP, who represented Michael Ho explained that back in 2020, the executive had developed a growth strategy for Marathon Digital. This includes developing a large-scale Bitcoin mining facility in North America.

The law firm stated that Marathon breached the agreement by executing Ho’s strategy without compensating him for his efforts. Thus, the Bitcoin mining giant breached the non-circumvent agreement between the two parties.

David Affeld, one of the partners at Affeld England & Johnson LLP, said that this verdict puts clear emphasis on honoring the agreements. “It sends a powerful message that ethical business practices are not optional, they are essential. It reinforces the importance of honoring contractual obligations and respecting professional relationships,” said Affled.

After falling 3% on Monday, the MARA stock is facing further selling pressure dropping an additional 2,.5% in the pre-market session on Tuesday.

Also Read: Kaspa Price Jumps 13% As Bitcoin Mining Giant Marathon Digital Mines the Altcoin

Bitcoin Miner Capitulation Is Over

Popular Bitcoin analyst Willy Woo said that one of the most popular indicators i.e. the Bitcoin miner capitulation is now over. The analyst also added that the Bitcoin hash rate is now recovering sharply suggesting the bottom in both – BTC price and hash rate – that aligns with the introduction of the new generation mining hardware to the Bitcoin network.

Woo highlighted that the new M66s hardware went live last week, followed by the S21 Pros this week. This would provide an additional thrust to the hash rate highlighting network growth and increased security.

Courtesy: Willy Woo

As reported by CoinGape, the Bitcoin mining stocks have given a strong recovery registering 30-40% gains over the past month. Market analysts believe that these stocks would continue to outperform Bitcoin in the coming months.

According to Woo, macro bottoms occur when miner profitability is at its lowest, and a significant signal emerges when a Bitcoin halving event reduces miner earnings by 50%, often leading to a proper bull run. He indicated that the market is currently in this stage, suggesting that miners are poised to see increased profitability moving forward.

Woo added that public listed Bitcoin miners are likely to break out very soon and now is the opportune time to invest in Bitcoin mining.

Also Read: US Govt Dumps $4M In Bitcoin Again, Another BTC Selloff Ahead?

The post Bitcoin Miner Marathon Digital to Pay $139 Million Fine, MARA Stock Tanks 2.5% appeared first on CoinGape.

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Filed under: News - @ July 23, 2024 9:18 am