Marathon Digital, a publicly traded Bitcoin (BTC) mining platform recently announced the cancellation of its conference call schedule and the postponement of the publication of its fourth-quarter financial results for the year 2022.
According to the notice from the U.S. Securities and Exchange Commission (SEC), the Corporation Finance staff of the SEC has discovered certain accounting errors in the BTC miner’s report as far as 2021, hence the reason for the cancellation. Also, the filing revealed Marathon Digital’s mistake in its Q1, Q2, and Q3 reports from 2021-2022, as well as its audited annual report starting from 2021.
SEC Flags Error in Marathon Digital Operations
However, the issues stated by the regulator include the company’s inability to follow the normal requirement of calculating the impairment of digital assets, and operating a BTC mining pool as a third party, amongst others. As such, the firm has to fix its restatement issues that have affected its financial statements and work on not deviating from the accounting policy.
In response to the errors, the digital assets technology company said individuals should not rely on the earnings released, and other financial statements. The company intends to make the amendment and correct all that needs to be corrected as ordered by the SEC.
Although the deadline for corrections was slated for March 1, Marathon told the SEC it would be needing up to 15 days to effect the necessary corrections to the report, hence, the results for 2022 will be filed by March 16.
Recall that early last month, the Bitcoin miner for the first time, took advantage of the recent crypto price rally by announcing the sales of about 1500 BTC. Furthermore, the firm used the funds realized from the sales to finance its operational costs as well as many other expenses that showed up. Going forward, Marathon intends to continually sell a portion of its BTC holdings to fund monthly operational costs.
Meanwhile, the dwindling crypto market has also affected the crypto mining sector as public bitcoin miners have resolved in shutting down operations. It has also been reported that the miners have sold nearly all the coins realized in 2022 to fund operations and remain afloat.
