Mining
Bitcoin Mining Company Fined $138 Million for Breach of Contract
Tuesday. July 23 at 8:00 PM
1 min. readMarathon Digital, the leading Bitcoin mining firm in terms of market capitalization, has been fined $138 million for violating a non-disclosure or non-circumvention agreement. Michael Ho, co-founder of US Bitcoin Corp and chief strategy officer of mining company Hut 8, won a unanimous jury verdict in a breach of contract lawsuit against Marathon Digital Holdings. The agreement aims to protect firms from being bypassed in transactions. Marathon breached the agreement by implementing Ho's growth strategy without compensating him for the provided proprietary information. The verdict highlights the significance of honoring commitments and selecting trustworthy business partners. Despite the legal issue, Marathon Digital remains the world's largest Bitcoin mining company with a market capitalization of $6.77 billion, surpassing CleanSpark by 48%. In June, Marathon Digital doubled its operational hashrate to 26.3 exahashes per second, attributing the increase to improvements in its Ellendate facility.