To mine Bitcoin (BTC), Marathon Digital, will republish a series of old financial statements after the Securities and Exchange Commission (SEC) pointed out some accounting errors the company made.
according to a presentation to the SEC on February 27, Marathon will reissue its unaudited quarterly reports for the first, second and third quarters of 2021 and 2022, in addition to its 2021 audited annual report.
Marathon noted that the affected financial statements, related earnings reports and other financial communications during these periods “should not be reliable.”
The issues highlighted by the SEC were the Marathon method for calculating impairment of digital assets, as well as Marathon’s determination that he had acted as an agent while operating a Bitcoin mining pool rather than as a principal.
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A principal is an entity that has the legal authority to make decisions, while an agent is an entity that can only act on behalf of a principal.
Marathon said that by changing the determination of his role in the pool operation from agent to principal, revenue and cost of revenue will see small increases, but he doesn’t think the change will impact his bottom line.
“The restatement of the Impacted Financial Statements is not expected to have any impact on total margin, operating income or net income in 2021 or any of the interim periods in 2021 or 2022.”
As a result of accounting problemsMarathon postponed its fourth-quarter 2022 earnings call, which was scheduled for February 28, and will postpone the release of its corresponding financial results.
Today, we announced that we are cancelling our webcast and conference call for Q4 & FY 2022, initially scheduled for today at 4:30 p.m. ET, and are postponing the publication of our corresponding financial results. For more, please see this press release: https://t.co/UAryIr56aC
— Marathon Digital Holdings (NASDAQ: MARA) (@MarathonDH) February 28, 2023
Marathon plans to file its 2022 results by March 16, after notifying the SEC that it would take up to 15 days to make any necessary corrections to the report, previously required to be submitted by March 1.
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The miner announced on February 2 that it had sold 1,500 BTC throughout January, marking the first time it had sold Bitcoin since October 1, 2020, as it seeks to build up a good financial balance of both cash and Bitcoin and ensure it can be flexible throughout 2023.
While 2022 turned out to be a difficult year for Bitcoin miners, leading to the capitulation of many companies like Core Scientific on December 21 of last year, A rising BTC price and stable electricity prices have helped the industry rebound strongly so far in 2023, with the production and hash rate generally up across the board.
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