Marathon Patent Group: Bright Red Flags With This Newfangled 'Blockchain' Play

|
About: Marathon Patent Group, Inc. (MARA), Includes: PTE, RIOT
by: Hindenburg Investment Research
This article is exclusive for subscribers.
Summary

Marathon recently announced an agreement for the acquisition of Global Bit Ventures Inc. that will leave prior common shareholders with just 19% of the company.

GBV was an entity set up only in August of this year and appears to have an undisclosed security interest with the former CFO, EVP and Secretary of Marathon.

Marathon has multiple concerning parallels to Riot Blockchain, which recently engineered a similarly dubious pivot to the “blockchain."

BDO resigned as auditor November 27. Per the filing “the resignation of BDO was not recommended by the Company’s audit committee."

We are urging strong caution to investors in Marathon regardless of one’s views on blockchain technology.

With “blockchain mania” in full swing, Marathon Patent Group Inc. (NASDAQ:MARA) has seemingly hitched itself to the blockchain wagon and rode the wave to nearly 5x returns in a matter of