Bitcoin mining firm Riot Platforms (RIOT) revealed it would delay filing the annual 10-K report to the Securities and Exchange Commission. The update linked the delay from the attempts to address concerns expressed by the accounting firm regarding Riot’s impairment calculation for the bitcoin assets.
RIOT Platform would inform the SEC on March 2 that it would take longer to assess the effect of the revised approach to assess impairment. The registrant admitted the existence of material errors within the financial statements and reporting.
Riot Platform and Marathon Digital Admit Material Errors
Riot confessed that the material errors were existing since the 2020 financial statements. The mining firm indicated that the existence of material errors made the financial statements unreliable. Consequently, Riot would take longer for the firm to complete revising the 10-K. The firm would complete the corrections and file the 10-K report for its 2022 trading year.
The revelation of material errors in the previous filings from 2020 left Riot shares 2.4% deep. The Nasdaq listed bitcoin miner recovered from the decline to realize 2.59% on Monday, At press time 08.00 UTC, its share RIOT exchanging hands at US$ 6.34.
Also read:Elsewhere, rival bitcoin mining firm Marathon Digital (MARA) had revealed the need to restate sections of the audited 2021 accounts. Also, Marathon admitted it would review the unaudited quarter reports in 2022. The exercise follows concerns expressed by SEC regarding the approach Marathon is deploying to calculate digital assets’ impairment.
Mixed Recovery in Mining Segment
Marathon Digital also announced delaying release of the 2022 last quarter results. The Nasdaq listed crypto miner has since postponed the release of the results despite setting its disclosure date as Tuesday February 28. Its share MARA has since recovered to $6.38, up by 1.92%.
Recovery portrayed by the mining companies is evident of sustained increase in bitcoin price since the onset of 2023. Cipher Mining Inc regained to realize $1.61 being 1.26% share price increase.
Nonetheless, Hut 8 Mining and Bitfarms are yet to escape the bloodbath with the shares still trapped within the redzone. The two mining firms join Core Scientific Inc that is battling bearish steam. The downtrend is strangling its shares currently priced at $0.37, 3.29% down in a day.
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