America

David Vance

Bitcoin

Million

<a href="https://ultramining.com/news/en/marathon-digital-to-boost-energy-efficiency-with-s19-xp-miners/">Marathon</a> Digital Holdings, the largest Bitcoin mining company by market cap, must pay $138 million in damages. This follows a jury verdict in a breach of contract lawsuit. The federal court concluded that Marathon breached an agreement with Michael Ho, Chief Strategy Officer of rival <a href="https://ultramining.com/news/en/hut-8s-q2-2023-a-bitcoin-mining-marvel/">Hut 8</a>, according to <a href="https://www.financemagnates.com/cryptocurrency/largest-bitcoin-miner-on-wall-street-ordered-to-pay-138-million/">Financemagnates</a>. 
Ho had provided Marathon with proprietary information about a large-scale energy supplier for their mining operations. The agreement stated that Marathon wouldn't engage with the supplier without compensating Ho. However, Marathon allegedly executed Ho's strategy for a large-scale Bitcoin mining facility in North America without paying him. 
"The unanimous jury verdict for $138 million vindicates Michael Ho's efforts and expertise," explained David Affeld from Affeld England &amp; Johnson LLP, who represented Ho.&nbsp;&nbsp; 
Despite this setback, Marathon Digital remains the world’s largest Bitcoin mining firm, valued at approximately $6.77 billion. The company recently doubled its operational <a href="https://ultramining.com/news/en/impending-bitcoin-halving-may-trigger-major-hashrate-decline-say-experts/">hashrate</a> to 26.3 exahashes per second in June.&nbsp; 
Investors showed little reaction to the fine. Marathon's shares (NASDAQ: MARA) fell by 3% to just under $24 during Monday's trading session. They lost an additional 2% in pre-market trading, testing the level of $23.46. 
Last year, the company’s revenue increased by 229%, reaching a record high of $388 million. Its net income saw a significant increase to $261.2 million, equivalent to $1.06 per diluted share. Additionally, the adjusted EBITDA grew to $419.9 million. 
For comparison, the second-largest crypto miner on Wall Street, Riot Platforms, has a market capitalization of around $3.2 billion.

Marathon Digital Faces $138 Million Penalty for Contract Breach with Competitor

Ultramining_Eng

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