Marathon Digital Holdings, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Marathon Digital Holdings, Inc. has filed its 2023 10-K report detailing its operations and financial standing.</b>

AI Summary

MARATHON DIGITAL HOLDINGS, INC. (MARA) filed a Annual Report (10-K) with the SEC on February 28, 2024. Marathon Digital Holdings, Inc. filed its annual report on Form 10-K for the fiscal year ended December 31, 2023. The filing covers the period from January 1, 2023, to December 31, 2023. The company's principal business is described as Services-Computer Processing & Data Preparation. Marathon Digital Holdings, Inc. was formerly known as Marathon Patent Group, Inc. and American Strategic Minerals Corp. The company is incorporated in Nevada with its principal business address in Las Vegas, NV.

Why It Matters

For investors and stakeholders tracking MARATHON DIGITAL HOLDINGS, INC., this filing contains several important signals. This 10-K filing provides a comprehensive overview of Marathon Digital Holdings' financial performance, operational activities, and strategic direction for the fiscal year 2023, which is crucial for investors to assess the company's progress and future prospects. The detailed financial statements and risk factors within the report offer insights into the company's exposure to the volatile cryptocurrency market and its operational efficiency in digital asset mining.

Risk Assessment

Risk Level: medium — MARATHON DIGITAL HOLDINGS, INC. shows moderate risk based on this filing. The company's business is heavily reliant on the price and volatility of Bitcoin, which introduces significant financial risk.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to understand Marathon Digital's exposure to cryptocurrency market fluctuations and operational challenges.

Key Numbers

• 2023-12-31 — Fiscal Year End (Fiscal year end date)
• 2024-02-28 — Filing Date (Date the 10-K was filed)
• 2023-01-01 — Reporting Period Start (Start date of the reporting period)
• 2023-12-31 — Reporting Period End (End date of the reporting period)

Key Players & Entities

• MARATHON DIGITAL HOLDINGS, INC. (company) — Filer name
• MARA (company) — Ticker symbol
• 10-K (filing) — Form type
• 20231231 (date) — Period of report
• 20240228 (date) — Filed as of date
• 0001507605 (company) — Central Index Key
• 7374 (industry) — Standard Industrial Classification
• NV (location) — State of incorporation

FAQ

Risk Factors

• Volatility of Bitcoin Prices [high — financial]: The company's financial performance is significantly impacted by the price and volatility of Bitcoin, which can lead to substantial fluctuations in revenue and profitability.
• Dependence on Mining Infrastructure [medium — operational]: The company relies heavily on its Bitcoin mining infrastructure, including hardware and energy supply, making it vulnerable to operational disruptions, hardware failures, and energy cost fluctuations.
• Evolving Regulatory Landscape [medium — regulatory]: The cryptocurrency industry faces an evolving regulatory landscape, which could impact the company's operations, compliance costs, and overall business model.

Key Dates

• 2023-12-31: Fiscal Year End — Marks the end of the reporting period for the 10-K filing.
• 2024-02-28: 10-K Filing Date — Date Marathon Digital Holdings, Inc. filed its annual report.

Key Financial Figures

• $0.0001 — ich registered Common Stock, par value $0.0001 per share MARA The Nasdaq Capital Marke
• $42,288 — er 31, 2023, the price of a bitcoin was $42,288. As additional mining operators enter t
• $1.0 billion — ents and bitcoin reserve totaled nearly $1.0 billion as of December 31, 2023. Refer to the "

Filing Documents

• mara-20231231.htm (10-K) — 2082KB
• exhibit31q4_2023.htm (EX-3.1) — 21KB
• exhibit32q4_2023.htm (EX-3.2) — 62KB
• exhibit41q4_2023.htm (EX-4.1) — 16KB
• exhibit101q4_2023.htm (EX-10.1) — 131KB
• exhibit102q4_2023.htm (EX-10.2) — 68KB
• exhibit109q4_2023.htm (EX-10.9) — 87KB
• exhibit191q4_2023.htm (EX-19.1) — 97KB
• exhibit211q4_2023.htm (EX-21.1) — 9KB
• exhibit231q4_2023.htm (EX-23.1) — 3KB
• exhibit311q4_2023.htm (EX-31.1) — 11KB
• exhibit312q4_2023.htm (EX-31.2) — 11KB
• exhibit321q4_2023.htm (EX-32.1) — 6KB
• exhibit971q4_2023.htm (EX-97.1) — 32KB
• mara-20231231_g1.jpg (GRAPHIC) — 404KB
• 0001628280-24-007680.txt (&nbsp;) — 11377KB
• mara-20231231.xsd (EX-101.SCH) — 74KB
• mara-20231231_cal.xml (EX-101.CAL) — 116KB
• mara-20231231_def.xml (EX-101.DEF) — 249KB
• mara-20231231_lab.xml (EX-101.LAB) — 830KB
• mara-20231231_pre.xml (EX-101.PRE) — 524KB
• mara-20231231_htm.xml (XML) — 1410KB

Risk Factors

Item 1A. Risk Factors 14

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 34

Cybersecurity

Item 1C. Cybersecurity 35

Properties

Item 2. Properties 36

Legal Proceedings

Item 3. Legal Proceedings 36

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 38 PART II.

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 39

Reserved

Item 6. Reserved 39

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 40

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 59

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data F- 1

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 54

Controls and Procedures

Item 9A. Controls and Procedures 54

Other Information

Item 9B. Other Information 57

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 57 PART III.

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 58

Executive Compensation

Item 11. Executive Compensation 58

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 58

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 58

Principal Accountant Fees and Services

Item 14. Principal Accountant Fees and Services 58 PART IV.

Exhibits and Financial Statement Schedules

Item 15. Exhibits and Financial Statement Schedules 59

Form 10-K Summary

Item 16. Form 10-K Summary 61 Table of Contents MARATHON DIGITAL HOLDINGS, INC. CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K for our fiscal year ended December 31, 2023 (this "Annual Report") and the information and documents incorporated by reference within this Annual Report, contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), which statements are subject to considerable risks and uncertainties. These forward-looking statements are intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements other than statements of historical fact contained in, or incorporated by reference within, this Annual Report. We have attempted to identify forward-looking statements by using words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "plan," "predict," "project," "should," "will," or "would," and similar expressions or the negative of these expressions. Specifically, this Annual Report, and the information and documents incorporated by reference within this Annual Report, contain forward-looking statements relating to, among other things: our ability to achieve profitability, and to maintain profitability in the future; high volatility in the volume attributable to our business; the rapidly changing regulatory and legal environment in which we operate, may lead to unknown future challenges to operating our business or may subject our business to added costs or uncertainty regarding our ability to operate; the availability of financing opportunities due to the volatility in the trading price of our common stock and the price of bitcoin; economic dependence on regulated terms of service and power rates; dep

BUSINESS

ITEM 1. BUSINESS CORPORATE OVERVIEW Marathon is a digital asset technology company that is principally engaged in producing or "mining" digital assets with a focus on the Bitcoin ecosystem. Our strategic initiatives primarily focus on mining and holding bitcoin as a long-term investment. Bitcoin is seeing increasing adoption, and, due to its limited supply, we believe it offers opportunity for appreciation in value and long-term growth prospects for our business. In addition to mining and holding bitcoin, from time to time we have explored, and we may in the future explore, opportunities to become more involved in businesses that expand or supplement those directly related to the self-mining of bitcoin as favorable market conditions and opportunities arise. For example, we have considered or engaged in owning and operating bitcoin mining facilities or data centers, selling proprietary software or technology to third parties operating in the Bitcoin ecosystem, offering advisory and consulting services to support bitcoin mining ventures in domestic and international jurisdictions, and generating electricity from renewable energy resources or methane gas capture to power bitcoin mining projects. The Company is committed to carbon neutrality and growing operations through predominately renewable energy sources. Our business is also active in Bitcoin-related projects related to the technological development of immersion, hardware, firmware, mining pools and side chains that use the blockchain cryptography. As used throughout this Annual Report, the term "Bitcoin" with a capital "B" is used to denote the Bitcoin protocol which implements a highly available, public, permanent, and decentralized ledger. The term "bitcoin" with a lower case "b" is used to denote the token, bitcoin. BITCOIN BLOCKCHAIN Bitcoin and Bitcoin Mining Bitcoin is a decentralized digital asset that operates on a peer-to-peer network, allowing users to send and receive payments without th

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View this 10-K filing on SEC EDGAR