Marathon Digital Holdings, Inc. has submitted a comprehensive response to the Securities and Exchange Commission (SEC) addressing comments on its financial reports for the fiscal year ended December 31, 2022, and the quarterly period ended September 30, 2023. The response, dated February 16, 2024, includes revisions to the company's revenue recognition policies and clarifications on its bitcoin mining operations as both an operator and a participant in mining pools. Marathon Digital has agreed to all the SEC's comments and provided exhibits of the revised revenue recognition policy footnotes to be included in its upcoming Form 10-K for the year ended December 31, 2023. The company has also committed to elaborating on the factors contributing to changes in cost of revenues in future filings. The SEC's...Show More

Marathon Digital Holdings, Inc. has submitted a comprehensive response to the Securities and Exchange Commission (SEC) addressing comments on its financial reports for the fiscal year ended December 31, 2022, and the quarterly period ended September 30, 2023. The response, dated February 16, 2024, includes revisions to the company's revenue recognition policies and clarifications on its bitcoin mining operations as both an operator and a participant in mining pools. Marathon Digital has agreed to all the SEC's comments and provided exhibits of the revised revenue recognition policy footnotes to be included in its upcoming Form 10-K for the year ended December 31, 2023. The company has also committed to elaborating on the factors contributing to changes in cost of revenues in future filings. The SEC's inquiries focused on the nature of Marathon Digital's services, the characterization of its revenue, and the measurement of noncash consideration. Marathon Digital's participation in pools that only pay rewards when a block is successfully mined is not a significant portion of its total revenues, and the company has concluded that changing its revenue measurement to a consistent methodology would not materially impact its results of operations.