Mining pool revenue recognition error identified
Company: Marathon Digital
The claim, verbatim
The company incorrectly classified itself as an agent rather than principal in operating a third-party mining pool; should record mining pool revenues and costs on gross basis rather than net
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 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”
How we checked this
Checked on September 24, 2026. The cited source supports every part of this claim.
The filing says the agent assessment was incorrect and that pool revenue should have been recorded gross, with an offsetting cost of revenue, rather than net.
Confirmed in the source:
- The company incorrectly assessed that it acted as an agent in operating a mining pool that included third-party participants
- The company should have concluded that it acted as a principal as pool operator
- The company should have recorded pool revenue on a gross basis, with an offsetting cost of revenue, rather than on a net basis
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 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”