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The largest Bitcoin mining company by market value, Marathon Digital, has been fined $138 million for violating a non-disclosure or non-circumvention agreement. Michael Ho, former co-founder of US Bitcoin Corp and Chief Strategy Officer of mining company Hut 8, won the unanimous jury verdict in a contract breach lawsuit against Marathon Digital Holdings.
What Is Happening at Marathon Digital?
A non-circumvention agreement is a legally enforceable agreement that protects companies or individuals from being bypassed by other parties involved in a transaction. Affeld England & Johnson LLP, representing Ho, stated in a press release that the executive developed a growth strategy for Marathon in 2020, including the development of a large-scale Bitcoin mining facility in North America.
According to the law firm, Marathon violated its agreement with Ho by implementing its strategy without compensating him for the confidential information he provided, essentially breaching the non-circumvention agreement. David Affeld, a partner at Affeld England & Johnson LLP handling the case, emphasized the importance of fulfilling commitments and choosing the right business partners. Affeld added:
“It sends a strong message that ethical business practices are not optional but necessary.”
Affeld also stated that the unanimous $138 million jury verdict validated Ho’s efforts and expertise. Affeld shared the following on the matter:
“This reinforces the importance of fulfilling contractual obligations and respecting professional relationships.”
Affeld collaborated with Gregg Zucker from Foundation Law Group LLP, who initiated the lawsuit.
Details on the Matter
Despite the lawsuit, Marathon Digital Holdings remains the world’s largest Bitcoin mining company by market value. The company, valued at $6.77 billion, surpasses the second-largest mining company, CleanSpark, by 48%. According to CompaniesMarketCap data, CleanSpark’s market value is $4.13 billion.
In June, Marathon Digital doubled its operational hashrate from the previous year to 26.3 exahash (EH/s). The increase was attributed to improvements at the Ellendate facility, which became fully operational in July. According to Marathon Digital’s CEO and President Fred Thiel, the mining pool saw a 10% increase from the previous year, capturing 158 blocks per month.
