Marathon Digital is reportedly required to pay a multimillion-dollar penalty to the founder of a competing mining company.
Michael Ho allegedly developed a growth strategy for Marathon, but did not receive the appropriate compensation.
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.
Marathon Digital Hit with
$138 Million Verdict in Contract Breach Case
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.
Marathon also addressed the issue, stating that while they respect the decision, they are convinced that "the jury reached the wrong conclusion."
"There was no wrongdoing on the company’s part," Marathon Digital commented in an emailed statement. "We also believe that the damages awarded have no legal basis. We intend to challenge this verdict and commence the appeal process as soon as practicable.”
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.
Marathon Digital Hit with
$138 Million Verdict in Contract Breach Case
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.
Marathon also addressed the issue, stating that while they respect the decision, they are convinced that "the jury reached the wrong conclusion."
"There was no wrongdoing on the company’s part," Marathon Digital commented in an emailed statement. "We also believe that the damages awarded have no legal basis. We intend to challenge this verdict and commence the appeal process as soon as practicable.”
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,
Damian's adventure with financial markets began at the Cracow University of Economics, where he obtained his MA in finance and accounting. Starting from the retail trader perspective, he collaborated with brokerage houses and financial portals in Poland as an independent editor and content manager. His adventure with Finance Magnates began in 2016, where he is working as a business intelligence analyst.
From Chat to Stock: xStocks Puts Tokenized U.S. Equities Inside TON Wallet on Telegram
Executive Interview | Charlotte Bullock | Chief Product Officer, Bank of London | FMLS:25
Executive Interview | Charlotte Bullock | Chief Product Officer, Bank of London | FMLS:25
In this interview, we sat down with Charlotte Bullock, Head of Product at The Bank of London, previously at SAP and now shaping product at one of the sector’s most ambitious new banking players.
Charlotte reflects on the Summit so far and talks about the culture inside fintech banks today. We look at the pressures that come with scaling, and how firms can hold onto the nimble approach that made them stand out early on.
We also cover the state of payments ahead of her appearance on the payments roundtable: the blockages financial firms face, the areas that still need fixing, and what a realistic solution looks like in 2026.
In this interview, we sat down with Charlotte Bullock, Head of Product at The Bank of London, previously at SAP and now shaping product at one of the sector’s most ambitious new banking players.
Charlotte reflects on the Summit so far and talks about the culture inside fintech banks today. We look at the pressures that come with scaling, and how firms can hold onto the nimble approach that made them stand out early on.
We also cover the state of payments ahead of her appearance on the payments roundtable: the blockages financial firms face, the areas that still need fixing, and what a realistic solution looks like in 2026.
In this conversation, we sit down with Drew Niv, CSO at ATFX Connect and one of the most influential figures in modern FX.
We speak about market structure, the institutional view on liquidity, and the sharp rise of prop trading, a sector Drew has been commenting on in recent months. Drew explains why he once dismissed prop trading, why his view changed, and what he now thinks the model means for brokers, clients and risk managers.
We explore subscription-fee dependency, the high reneging rate, and the long-term challenge: how brokers can build a more stable and honest version of the model. Drew also talks about the traffic advantage standalone prop firms have built and why brokers may still win in the long run if they take the right approach.
In this conversation, we sit down with Drew Niv, CSO at ATFX Connect and one of the most influential figures in modern FX.
We speak about market structure, the institutional view on liquidity, and the sharp rise of prop trading, a sector Drew has been commenting on in recent months. Drew explains why he once dismissed prop trading, why his view changed, and what he now thinks the model means for brokers, clients and risk managers.
We explore subscription-fee dependency, the high reneging rate, and the long-term challenge: how brokers can build a more stable and honest version of the model. Drew also talks about the traffic advantage standalone prop firms have built and why brokers may still win in the long run if they take the right approach.
Executive Interview | Remonda Z. Kirketerp Møller| CEO & Founder Muinmos | FMLS:25
Executive Interview | Remonda Z. Kirketerp Møller| CEO & Founder Muinmos | FMLS:25
In this interview, Remonda Z. Kirketerp Møller, founder of Muinmos, breaks down the state of AI in regtech and what responsible adoption really looks like for brokers. We talk about rising fragmentation, the pressures around compliance accuracy, and why most firms are still in the early stages of AI maturity.
Ramanda also shares insights on regulator sandboxes, shifting expectations around accountability, and the current reality of MiCA licensing and passporting in Europe.
A concise look at where compliance, onboarding, and AI-driven processes are heading next.
In this interview, Remonda Z. Kirketerp Møller, founder of Muinmos, breaks down the state of AI in regtech and what responsible adoption really looks like for brokers. We talk about rising fragmentation, the pressures around compliance accuracy, and why most firms are still in the early stages of AI maturity.
Ramanda also shares insights on regulator sandboxes, shifting expectations around accountability, and the current reality of MiCA licensing and passporting in Europe.
A concise look at where compliance, onboarding, and AI-driven processes are heading next.
In this conversation, we speak with Aydin Bonabi, CEO and co-founder of Surveill, a firm focused on fraud detection and AI-driven compliance tools for financial institutions.
We start with Aydin’s view of the Summit and the challenges brokers face as fraud tactics grow more complex. He explains how firms can stay ahead through real-time signals, data patterns, and early-stage detection.
We also talk about AI training and why compliance teams often struggle to keep models accurate, fair, and aligned with regulatory expectations. Aydin breaks down what “good” AI training looks like inside a financial environment, including the importance of clean data, domain expertise, and human oversight.
He closes with a clear message: fraud is scaling, and so must the tools that stop it.
In this conversation, we speak with Aydin Bonabi, CEO and co-founder of Surveill, a firm focused on fraud detection and AI-driven compliance tools for financial institutions.
We start with Aydin’s view of the Summit and the challenges brokers face as fraud tactics grow more complex. He explains how firms can stay ahead through real-time signals, data patterns, and early-stage detection.
We also talk about AI training and why compliance teams often struggle to keep models accurate, fair, and aligned with regulatory expectations. Aydin breaks down what “good” AI training looks like inside a financial environment, including the importance of clean data, domain expertise, and human oversight.
He closes with a clear message: fraud is scaling, and so must the tools that stop it.
Exness expands its presence in Africa: Inside our interview with Paul Margarites in Cape Town
Exness expands its presence in Africa: Inside our interview with Paul Margarites in Cape Town
Finance Magnates met with Paul Margarites, Exness regional commercial director for Sub-Saharan Africa, during a visit to the firm’s office opening in Cape Town. In this talk, led by Andrea Badiola Mateos, Co-CEO at Finance Magnates, Paul shares views on the South African trading space, local user behavior, mobile trends, regulation, team growth, and how Exness plans to grow in more markets across the region. @Exness
Read the article at: https://www.financemagnates.com/thought-leadership/exness-expands-its-presence-in-africa-inside-our-interview-with-paul-margarites/
#exness #financemagnates #exnesstrading #CFDtrading #tradeonline #africanews #capetown
Finance Magnates met with Paul Margarites, Exness regional commercial director for Sub-Saharan Africa, during a visit to the firm’s office opening in Cape Town. In this talk, led by Andrea Badiola Mateos, Co-CEO at Finance Magnates, Paul shares views on the South African trading space, local user behavior, mobile trends, regulation, team growth, and how Exness plans to grow in more markets across the region. @Exness
Read the article at: https://www.financemagnates.com/thought-leadership/exness-expands-its-presence-in-africa-inside-our-interview-with-paul-margarites/
#exness #financemagnates #exnesstrading #CFDtrading #tradeonline #africanews #capetown
