The Bitcoin miner received a letter from the Securities and Exchange Commission highlighting accounting mistakes it made on multiple financial disclosures.
Bitcoin BTC ($23,840) Miner Marathon Digital will reissue several past financial statements after the US Securities and Exchange Commission revealed some accounting errors made by the company.
As one Feb. 27th SEC filing, Marathon will return unaudited quarterly reports for the first, second, and third quarters of 2021 and 2022 in addition to its audited annual report for 2021.
Marathon said the relevant financial statements, related financial releases, and other financial communications at those times “should not be relied upon.”
The comments were made public by the SEC on February 22 is Marathon’s method of calculating the price of digital assets, and Marathon’s decision that it acted as an agent when operating the Bitcoin pool rather than as 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 said that by changing the decision-making power of its pool construction from the operator to the manager, the revenue and cost of capital will see a slight increase, but it is not believed that the change will affect the result.
“The restatement of the financial statements is not expected to affect gross margin, operating profit, or net profit in 2021 or at any time in the interim period in 2021 or 2022.”
Due to financial issues, Marathon postponed the call received for the fourth quarter of 2022, which was scheduled to take place on February 28, and will postpone the publication of the corresponding financial results.
Marathon aims to publish its results for 2022 by March 16. He told the SEC that it would take up to 15 days to make the necessary corrections to the report, which was originally due March 1.
The miner announced on February 2 that he sold 1,500 BTC in January, marking the first time he has sold Bitcoin since October 1, 2020, as he seeks to establish a “war chest” of both money and Bitcoin and sees it potentially changing in 2023.
Although 2022 has proven to be a difficult year for Bitcoin miners – leading to the capitulation of companies such as Core Scientific in December – the increase in the price of BTC and stable electricity prices have helped the company hand body and output and hash rate generally across the board.
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