Marathon Digital announces it is postponing the release of its financial results for the financial year 2022

Key Points:

• The fourth quarter and fiscal year 2022 webcast and conference call for Marathon Digital has been canceled.
• Marathon is expected to announce revenue for the fourth quarter that is three times higher than it was for the third quarter.

Marathon Digital Holdings announced today that it has postponed the release of its corresponding financial results and has canceled its webcast and conference call for the fourth quarter and fiscal year 2022, both of which were initially scheduled for today, February 28, 2023, at 4:30 p.m. Eastern time.

For its fourth-quarter profits, Marathon is anticipated to report revenue that is three times more than what it did in the third quarter. The company plans to offer such information when it is appropriate in the future.

After one of the most catastrophic quarters ever for the fledgling sector, the new year’s rebound in bitcoin is reviving several crypto-mining businesses that were on the verge of bankruptcy.

For the first nine months of 2022, Marathon has already recorded a net loss of $280 million on sales of roughly $89 million.

After an investigation from the U.S. Securities and Exchange Commission (SEC), the business stated that it would need to recast a portion of its audited 2021 results and presently unaudited quarterly reports from 2022.

According to an SEC filing, the problem included the company’s method of computing the impairment on digital assets and its judgment that it was functioning as an agent rather than a principal in running a third-party mining pool.

Marathon’s mining capacity increased again in the most recent quarter as a substantial chunk of its gear was transferred from a Montana location to one fueled by wind energy in Texas.

Once debt-financing options dried up and interest payments exceeded cash flows in the quarter, the surge in Bitcoin made it simpler for miners to borrow funds through the stock market.

Miners like Riot Platforms and Marathon Digital Holdings have gained more than 75% apiece after seeing their value decline in 2022, making them among the best-performing US equities this year.

Because the majority of miners lack the funds to deposit sufficient collateral for power purchase agreements, which allow purchasers to lock in a certain energy price for a set period of time, they may be even more exposed to the fluctuations in electricity costs this summer.

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By Coincu News | Original Link