Marathon Digital Holdings Reschedule Publication of Q4 Financial Reports

Bitcoin (BTC) mining company Marathon Digital Holdings has announced the postponement of its fourth-quarter earnings report publication over some accounting errors spotted by the United States Securities and Exchange Commission (SEC).

Additionally, the conference call and webcast for the Q4 which was scheduled to hold in the later hours of Tuesday 28th February was also canceled.

The published statement on its website stated that Marathon “canceled its webcast and conference call for the fourth quarter and fiscal year 2022, initially scheduled for today, February 28, 2023, at 4:30 p.m. Eastern time, and will postpone the publication of its corresponding financial results.”

SEC Spots Error on Marathon’s Financial Reports

The SEC filed a document on Monday which says that Marathon’s Audit Committee of the Board of Directors had consulted with its independent auditor Marcum LLP after which some accounting errors were detected. In effect, the previously submitted financial statements which were attached to the company’s annual report ” should no longer be relied upon.” 

Some of these previously issued reports are the audited reports for the fiscal year which ended on December 31st, 2021, and unaudited reports for 2022 and 2021. It also includes interim periods for the fiscal year which also ended on March 31, 2021, June 30, 2021, and September 30, 2021. The same period was 2022 fiscal year was also included.

As it stands, Marathon Digital Holdings is making plans to rectify these errors and correct the Impacted Financial Statements.

The errors spotted were Marathon Digital’s method of computing its impairment of digital assets which was not in compliance with the required standards. Also, its resolution to function as an agent in operating a third-party mining pool instead of a principal is another issue. Based on a notification sent to the SEC, Marathon plans to publish its 2022 results by March 16th.

The American BTC mining platform has been plagued with several problems like many with crypto mining companies.

Its Q3 report showed a huge amount of loss up to $75.4 million even though the company still emerged as the second-largest BTC holder with 11,285 BTC. Earlier last month, the company put 1,500 Bitcoin up for sale and this was the first time it harnessed the crypto rally which started at the beginning of 2023.