Marathon Digital to Correct Earnings Figures After SEC Letter

The crypto miner said certain financial statements published in 2021 and 2022 should not be relied upon

article-image

Fred Thiel, CEO, Marathon Digital

share

Marathon Digital was set to report financial results for the fourth quarter on Tuesday but postponed its earnings release. The crypto miner is set to recast some figures after the US securities regulator flagged inaccuracies.

The Las Vegas, Nevada-based company received a letter from the Securities and Exchange Commission’s corporation finance staff on Feb. 22 that picked out some accounting errors, according to a filing published Tuesday. 

The issues raised in the letter included the calculation of impairment of digital assets and its determination of revenue from contracts with customers. Impairment refers to how a digital asset is recorded when its price dips below its initial purchase price.

Marathon said it recently determined its prior assessment that it acted as an agent in operating a third-party mining pool was incorrect, and concluded that it was acting as a principal instead.  Portions of its financial statements in 2021 and as-yet unaudited quarterly reports for 2022 should not be relied upon, it added.

“The company estimates that both its revenues and its cost of revenues for the year ended December 31, 2021 were understated due to the ‘net’ vs. ‘gross’ presentation of revenues in its financial statements,” it said.

A number of figures are expected to change as a result of the restatement, including revenue, cost of revenue, energy and hosting.

The restatement is not expected to have an impact on total margin, operating income or net income in 2021 or 2022.

Marathon said because of the SEC’s letter, the company will be unable to file and make corrections to its 2022 annual report on Form 10-K by its March 1 deadline. However, it expects to file within 15 days of this deadline.

Marathon Digital’s stock is down nearly 70% in the last 12 months, but has risen over 17% in the last three months. It ended Tuesday trading roughly flat at $7.10 per share on the Nasdaq.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Research Report Templates (2).png

Research

We’re bullish on the PUMP token. We believe Pump.fun's brand strength, existing integrations, product roadmap, and strategic levers justify PUMP's TGE valuation, and expect the token to re-rate meaningfully higher in the months ahead.

article-image

Big blockers wasted a bitcoin fortune trying to prove a point

article-image

Coinbase’s newest acquisition includes the CEO and Head of Research from Opyn

article-image

Crypto’s highest purpose might be to make markets better by making them bigger

article-image

The non-profit’s “Project Open” seeks to let stocks trade directly on Solana

article-image

The acquisition is Pump.fun’s first, and comes just days before its planned ICO

article-image

As Trump’s tariff war reignites, everyone is assuming the dollar will continue its path lower. But the journey might be bumpy