Benzinga - Shares of digital currency miner Marathon Digital Holdings Inc (NASDAQ: MARA) are falling in Tuesday’s after-hours session. The company was set to report fourth-quarter results after the bell but postponed the report earlier in the day after finding accounting errors.
What Happened: Marathon Digital canceled its fourth-quarter conference call and postponed publishing its corresponding financial results.
The company’s independent auditor concluded that due to certain accounting errors, the previously issued audited consolidated financial statements for the fiscal year ended Dec. 31, 2021, and the previously issued unaudited condensed consolidated financial statements for the interim periods in 2022 and 2021 for the fiscal periods ended Mar. 31, 2021, and 2022, Jun. 30, 2021, and 2022 and Sept. 30, 2021, and 2022 should no longer be relied upon.
“The company intends to correct the errors and will be restating the Impacted Financial Statements,” according to a new regulatory filing.
Marathon Digital is a Bitcoin (CRYPTO: BTC) miner. The company owns cryptocurrency mining machines and a data center to mine digital assets.
See Also: Cryptocurrency Market Booms in 2023: Token Universe Surges 42% To $1.1 Trillion
“In late 2021 and early 2022, the company operated a bitcoin mining pool that included a small number of unrelated third-party participants. The company accounts for revenues based on ASC Topic 606, Revenue from Contracts with Customers (ASC “606”) and had determined that in its capacity as the operator of a mining pool that included third parties, it acted as an agent,” the filing states.
“As a result, the company recorded revenues on a net basis, subtracting any revenue allocated to the third-party pool participants from its revenue as the operator of the pool. The company recently determined that its assessment that it acted as an Agent in operating the third-party mining pool was incorrect and that it should have concluded that it was acting as a principal in its capacity as the pool operator.”
MARA Price Action: Marathon Digital shares are down 3.8% after hours at $6.83 at the time of publication, according to Benzinga Pro.
Photo: mohamed_hassan from Pixabay.
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