Bitcoin (BTC) miner Marathon Digitial will reissue some previous financial reports after the Securities and Exchange Commission (SEC) pointed out some accounting errors the firm made.
According to an SEC filing on February 27, Marathon will restate its unaudited Q1, Q2, and Q3 quarterly reports from 2021 and 2022 in addition to its audited annual report from 2021.
Marathon noted that the affected financial statements, related earnings releases and other financial communications during the period “will not be relied upon.”
The problem highlighted by the SEC was Marathon’s method of calculating defects in digital assets, as well as Marathon’s determination that it had acted as an agent when operating a Bitcoin mining pool rather than a principal.
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 the principal.
Marathon noted that by changing the role determination in pool operations from agent to principal, profit and loss costs will see a small increase but does not believe the change will impact the bottom line.
“The restatement of the Affected Financial Statements will not have an impact on total margin, operating income or net income in 2021 or in the interim period in 2021 or 2022.”
As a result of the accounting issues, Marathon is postponing its fourth quarter 2022 earnings call scheduled for February 28, and will delay the publication of the corresponding financial results.
Today, we announced that we are canceling the webcast and conference call for Q4 & FY 2022, originally scheduled for today at 4:30 pm ET, and postponing the publication of the corresponding financial results. For more, see this press release: https://t.co/UAryIr56aC
— Marathon Digital Holdings (NASDAQ: MARA) (@MarathonDH) February 28, 2023
Marathon intends to submit its results for 2022 on March 16, after notifying the SEC that it will take up to 15 days to make the necessary corrections to the previous report due on March 1.
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The miner announced on February 2nd that it had sold 1,500 BTC throughout January, marking the first sale of Bitcoin since October 1st, 2020 as it looks to create a “war chest” of cash and Bitcoin and guarantee flexibility throughout 2023.
While 2022 proved to be a difficult year for Bitcoin miners that led to the capitulation of many companies such as Core Scientific on December 21 last year, the increased price of BTC and stable electricity prices have helped the industry recover until now in 2023 with production. and Hashrates are generally up across the board.