Bitcoin impairment calculation error identified
Company: Marathon Digital
The claim, verbatim
The company's daily impairment calculation method for bitcoin was not in compliance with accounting standards; should use intraday low price for impairment when events indicate asset may be impaired
Source (primary)
Marathon Digital NT 10-K filed 2023-02-28 (SEC EDGAR, sec_filing)
View cached copy (2026-09-20)Live source ↗
Quote: “The Company recently determined that its method of calculating impairment on a daily basis using a standard cutoff time was not in compliance with the ASC 350-30-35-19 requirement to recognize impairment whenever carrying value exceeds fair value, which effectively calls for the intraday low price to be utilized in calculating impairment”
How we checked this
Checked on September 24, 2026. The cited source supports every part of this claim.
The filing lists the daily cutoff-time impairment method as non-compliant and says the standard effectively requires using the intraday low price.
Confirmed in the source:
- The company's method of calculating bitcoin impairment on a daily basis using a standard cutoff time did not comply with ASC 350-30-35-19
- The applicable standard effectively calls for using the intraday low price in calculating impairment when events or circumstances indicate the asset is more likely than not impaired
What we did: Read our cached copy of SEC EDGAR (https://www.sec.gov/Archives/edgar/data/1507605/000149315223006171/formnt-10k.htm) in full (10,377 characters, retrieved September 20, 2026) and checked each assertion in the claim against it.
Additional evidence
confirms Marathon Digital NT 10-K filed 2023-02-28
Quote: “The Company recently determined that its method of calculating impairment on a daily basis using a standard cutoff time was not in compliance with the ASC 350-30-35-19 requirement to recognize impairment whenever carrying value exceeds fair value, which effectively calls for the intraday low price to be utilized in calculating impairment”