Marathon Digital (MARA) 10-Q 12 Nov 20 2020 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2020	Nov. 06, 2020
Cover [Abstract]
Entity Registrant Name	Marathon Patent Group, Inc.
Entity Central Index Key	0001507605
Document Type	10-Q
Document Period End Date	Sep. 30, 2020
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business Flag	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		51,599,792
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2020

Consolidated Condensed Balance

Consolidated Condensed Balance Sheets - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 17,252,110	$ 692,963
Digital currencies	451,889	1,141
Deposit	13,269,670
Prepaid expenses and other current assets	627,552	800,024
Total current assets	31,601,221	1,494,128
Other assets:
Property and equipment, net of accumulated depreciation and impairment charges of $7,507,970 and $6,157,786 for September 30, 2020 and December 31, 2019, respectively	4,682,293	3,754,969
Right-of-use assets	224,954	297,287
Intangible assets, net of accumulated amortization of $189,804 and $136,422 for September 30, 2020 and December 31, 2019, respectively	1,020,196	1,073,578
Total other assets	5,927,443	5,125,834
TOTAL ASSETS	37,528,664	6,619,962
Current liabilities:
Accounts payable and accrued expenses	1,010,188	1,238,197
Mining servers payable		513,700
Current portion of lease liability	93,197	87,959
Warrant liability	31,500	12,849
Total current liabilities	1,134,885	1,852,705
Long-term liabilities
Convertible notes payable		999,106
Note payable	62,500
Lease liability	44,361	120,479
Total long-term liabilities	106,861	1,119,585
Total liabilities	1,241,746	2,972,290
Stockholders' Equity:
Preferred stock, $0.0001 par value, 50,000,000 shares authorized, no shares issued and outstanding at September 30, 2020 and December 31, 2019, respectively
Common stock, $0.0001 par value; 200,000,000 shares authorized; 38,962,432 and 8,458,781 issued and outstanding at September 30, 2020 and December 31, 2019, respectively	3,897	846
Additional paid-in capital	147,554,790	109,705,051
Accumulated other comprehensive loss	(450,719)	(450,719)
Accumulated deficit	(110,821,050)	(105,607,506)
Total stockholders' equity	36,286,918	3,647,672
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 37,528,664	$ 6,619,962

Consolidated Condensed Balanc_2

Consolidated Condensed Balance Sheets (Parenthetical) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Accumulated depreciation of property and equipment	$ 7,507,970	$ 6,157,786
Accumulated amortization of intangible assets	$ 189,804	$ 136,422
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	50,000,000	50,000,000
Preferred stock, shares issued
Preferred stock, shares outstanding
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	38,962,432	8,458,781
Common stock, shares outstanding	38,962,432	8,458,781

Consolidated Condensed Statemen

Consolidated Condensed Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Revenues
Total revenues	$ 835,184	$ 321,716	$ 1,713,832	$ 908,175
Operating costs and expenses
Cost of revenue	1,636,046	478,811	3,529,770	1,486,039
Compensation and related taxes	614,604	409,609	1,908,741	1,224,900
Consulting fees	259,563	34,000	325,688	84,000
Professional fees	206,368	91,908	515,562	287,282
General and administrative	112,800	115,247	311,303	359,319
Total operating expenses	2,829,381	1,129,575	6,591,064	3,441,540
Operating loss	(1,994,197)	(807,859)	(4,877,232)	(2,533,365)
Other income (expenses)
Other income	7,983	300	114,391	181,195
Foreign exchange loss				(11,873)
Loss on conversion of note			(364,832)
Realized gain (loss) on sale of digital currencies	11,206	(11,236)	15,466	13,208
Change in fair value of warrant liability	(21,875)	68,551	(18,651)	(7,753)
Change in fair value of mining payable			(66,547)
Interest income	2,466	8,428	4,845	30,802
Interest expense		(12,591)	(20,984)	(37,363)
Total other (expenses) income	(220)	53,452	(336,312)	168,216
Loss before income taxes	(1,994,417)	(754,407)	(5,213,544)	(2,365,149)
Income tax expense
Net loss	$ (1,994,417)	$ (754,407)	$ (5,213,544)	$ (2,365,149)
Net loss per share, basic and diluted:	$ (0.06)	$ (0.12)	$ (0.28)	$ (0.37)
Weighted average shares outstanding, basic and diluted:	31,520,736	6,372,061	18,868,967	6,353,643
Net loss	$ (1,994,417)	$ (754,407)	$ (5,213,544)	$ (2,365,149)
Other comprehensive income:
Unrealized gain on foreign currency translation
Comprehensive loss attributable to Marathon Patent Group, Inc.	(1,994,417)	(754,407)	(5,213,544)	(2,365,149)
Cryptocurrency Mining Revenue [Member]
Revenues
Total revenues	$ 835,184	$ 321,716	$ 1,713,832	$ 908,175

Consolidated Condensed Statem_2

Consolidated Condensed Statements of Stockholders' Equity (Unaudited) - USD ($)	Preferred Stock [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Deficit [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Total
Beginning balance at Dec. 31, 2018		$ 638	$ 105,461,396	$ (102,090,441)	$ (450,719)	$ 2,920,874
Beginning balance, shares at Dec. 31, 2018		6,379,992
Stock based compensation			620,030			620,030
Par value adjustment and additional shares issued due to reverse split		$ 1	(1)
Par value adjustment and additional shares issued due to reverse split, shares		5,413
Issuance of common stock, net of offering costs/At-the-market offering		$ 4	79,813			79,817
Issuance of common stock, net of offering costs/At-the-market offering, shares		41,614
Common stock issued for purchase of mining servers		$ 128	2,233,645			2,233,773
Common stock issued for purchase of mining servers, shares		1,276,442
Net Loss				(2,365,149)		(2,365,149)
Ending balance at Sep. 30, 2019		$ 771	108,394,883	(104,455,590)	(450,719)	3,489,345
Ending balance, shares at Sep. 30, 2019		7,703,461
Beginning balance at Jun. 30, 2019		$ 639	105,873,870	(103,701,183)	(450,719)	1,722,607
Beginning balance, shares at Jun. 30, 2019		6,385,405
Stock based compensation			207,555			207,555
Issuance of common stock, net of offering costs/At-the-market offering		$ 4	79,813			79,817
Issuance of common stock, net of offering costs/At-the-market offering, shares		41,614
Common stock issued for purchase of mining servers		$ 128	2,233,645			2,233,773
Common stock issued for purchase of mining servers, shares		1,276,442
Net Loss				(754,407)		(754,407)
Ending balance at Sep. 30, 2019		$ 771	108,394,883	(104,455,590)	(450,719)	3,489,345
Ending balance, shares at Sep. 30, 2019		7,703,461
Beginning balance at Dec. 31, 2019		$ 846	109,705,051	(105,607,506)	(450,719)	3,647,672
Beginning balance, shares at Dec. 31, 2019		8,458,781
Stock based compensation		$ 275	1,031,924			1,032,199
Stock based compensation, shares		2,745,639
Issuance of common stock, net of offering costs/At-the-market offering		$ 1,771	28,791,211			28,792,982
Issuance of common stock, net of offering costs/At-the-market offering, shares		17,712,635
Common stock issued for purchase of mining servers		$ 35	171,587			171,622
Common stock issued for purchase of mining servers, shares		350,250
Common stock issued for note conversion		$ 202	1,578,872			1,579,074
Common stock issued for note conversion, shares		2,023,739
Issue common stock and warrant for cash		$ 767	6,270,833			6,271,600
Issue common stock and warrant for cash, shares		7,666,666
Warrant exercised for cash		$ 1	5,312			5,313
Warrant exercised for cash, shares		4,722
Net Loss				(5,213,544)		(5,213,544)
Ending balance at Sep. 30, 2020		$ 3,897	147,554,790	(110,821,050)	(450,719)	36,286,918
Ending balance, shares at Sep. 30, 2020		38,962,432
Beginning balance at Jun. 30, 2020		$ 2,453	118,933,134	(108,826,633)	(450,719)	9,658,235
Beginning balance, shares at Jun. 30, 2020		24,526,302
Stock based compensation			360,211			360,211
Issuance of common stock, net of offering costs/At-the-market offering		$ 676	21,985,300			21,985,976
Issuance of common stock, net of offering costs/At-the-market offering, shares		6,764,742
Issue common stock and warrant for cash		$ 767	6,270,833			6,271,600
Issue common stock and warrant for cash, shares		7,666,666
Warrant exercised for cash		$ 1	5,312			5,313
Warrant exercised for cash, shares		4,722
Net Loss				(1,994,417)		(1,994,417)
Ending balance at Sep. 30, 2020		$ 3,897	$ 147,554,790	$ (110,821,050)	$ (450,719)	$ 36,286,918
Ending balance, shares at Sep. 30, 2020		38,962,432

Consolidated Condensed Statem_3

Consolidated Condensed Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (5,213,544)	$ (2,365,149)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	1,797,959	412,083
Amortization of patents and website	53,382	53,382
Realized gain (loss) on sale of digital currencies	(15,466)	(13,208)
Change in fair value of warrant liability	18,651	7,753
Change in fair value of mining payable	66,547
Stock based compensation	1,032,199	620,030
Amortization of right-of-use assets	72,332	67,602
Changes in operating assets and liabilities:
Accounts receivables
Digital currencies	(1,713,832)	(908,175)
Lease liability	(70,880)	(66,707)
Prepaid expenses and other assets	172,472	154,930
Accounts payable and accrued expenses	351,960	(163,822)
Net cash used in operating activities	(3,448,220)	(2,201,281)
CASH FLOWS FROM INVESTING ACTIVITIES
Sale of digital currencies	1,278,550	918,502
Purchase of property and equipment	(3,133,908)	(5,224)
Deposit for purchase of the miners	(13,269,670)
Net cash (used in) provided by investing activities	(15,125,028)	913,278
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds received on issuance of notes payable	62,500
Proceeds from issuance of common stock/At-the-market offering	29,756,736	83,453
Offering costs for the issuance of common stock/At-the-market offering	(963,754)	(3,636)
Proceeds from issuance of common stock and warrant, net	6,271,600
Proceeds received on exercise of warrants	5,313
Net cash provided by financing activities	35,132,395	79,817
Net increase (decrease) in cash and cash equivalents	16,559,147	(1,208,186)
Cash and cash equivalents - beginning of period	692,963	2,551,171
Cash and cash equivalents - end of period	17,252,110	1,342,985
Supplemental schedule of non-cash investing and financing activities:
Par value adjustment due to reverse split		1
Common stock issued for purchase of mining servers	171,622	2,233,773
Mining servers payable		1,852,477
Reduction of share commitment for purchase of mining servers	408,625
Common stock issued for note conversion	$ 1,579,074

Organization and Description of

Organization and Description of Business	9 Months Ended
	Sep. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Description of Business	NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS Organization Marathon Patent Group, Inc. (the “Company”) was incorporated in the State of Nevada on February 23, 2010 under the name Verve Ventures, Inc. On December 7, 2011, the Company changed its name to American Strategic Minerals Corporation and was engaged in the business of exploration and potential development of uranium and vanadium minerals. In June 2012, the Company discontinued the minerals business and began to invest in real estate properties in Southern California. In October 2012, the Company discontinued its real estate business when the former CEO joined the firm, and the Company commenced IP licensing operations, at which time the Company’s name was changed to Marathon Patent Group, Inc. The Company purchased cryptocurrency mining machines and established a data center in Canada to mine digital assets. The Company expanded its activities in the mining of new digital assets, while at the same time harvesting the value of its remaining IP assets. On September 30, 2019, the Company consummated the purchase of 6000 S-9 Bitmain 13.5 TH/s Bitcoin Antminers (“Miners”) from SelectGreen Blockchain Ltd. (the “Seller”), a British Columbia corporation, for which the purchase price was $4,086,250 or 2,335,000 shares of its common stock at a price of $1.75 per share. As a result of an exchange cap requirement imposed in conjunction with the Company’s Listing of Additional Shares application filed with Nasdaq to the transaction, the Company issued 1,276,442 shares of its common stock which represented $2,233,773 of the $4,086,250 (constituting 19.9% of the issued and outstanding shares on the date of the Asset Purchase Agreement) and upon the receipt of shareholder approval, at the Annual Shareholders Meeting to be held on November 15, 2019, the Company was authorized to issue the balance of the 1,058,558 unregistered common stock shares. The Company issued an additional 474,808 at $0.90 per share on December 27, 2019. On March 30, 2020, the Seller agreed to amend the total number of shares to be issued which was reduced to 2,101,500 shares and the rest of 350,250 shares were issued at $0.49 per share. There was no mining payable outstanding as of September 30, 2020. On May 11, 2020, the Company purchased 700 new generation M305+ASIC Miners from MicroBT for approximately $1.3 million. The 700 miners produce 80/Th and will generate 56 PH/s (petahash) of hashing power, compared to the Company’s current S-9 production of 46 PH/s. These next generation MicroBT ASIC miners are markedly more energy efficient than our existing Bitmain models. These miners were delivered to the Company’s Hosting Facility in June and are producing Bitcoins. The Company purchased 660 latest generation Bitmain S19 Pro Miners on May 12, 2020, 500 units on May 18, 2020 and an additional 500 units on June 11, 2020. These miners produce 110 TH/s and will generate 73 PH/s (petahash) of hashing power, compared to the Company’s S-9 production of 46 PH/s. The Company made the payments of approximately $4.2 million in the second quarter of 2020 and expects 660 of the 1,660 units to take delivery at its Hosting Facility in mid-August, and its hosting partner, Compute North, expects to install them within 48 hours of their arrival. The 1,000 remaining S-19 Pro Miners arrived in the 4 th On July 29, 2020, the Company announced the purchase of 700 next generation M31S+ASIC Miners from MicroBT. The miners arrived mid-August. Additionally, 660 of the 1,660 Bitmain S-19 Pro Miners previously purchased were delivered in mid-August. The 1,000 remaining S-19 Pro Miners due to arrive in the 4 th On August 13, 2020, the Company entered into a Long Term Purchase Contract with Bitmaintech PTE., LTD (“Bitmain”) for the purchase of 10,500 next generation Antminer S-19 Pro ASIC Miners The Company shall pay for the Antminers as follows: (1) Twenty percent (20%) of the total purchase price shall be paid as a nonrefundable down payment within forty-eight (48) hours of execution of the agreement. (2) The Company shall pay the twenty percent (20%) of the total purchase price prior to September 20, 2020. (3) The Company shall pay the ten percent (10%) of the total purchase price prior to October 10, 2020. (4) The Company shall pay the remaining fifty percent (50%) of the total purchase price in equal monthly installments due not less than fifty-five (55) days prior to the scheduled delivery of the Product(s) as follows: a) eight-point thirty-three percent (8.33%) no later than 55 days prior to each scheduled delivery period as to the first installment of products to be shipped to the Company in January 2021. b) eight-point thirty-three percent (8.33%) no later than 55 days prior to each scheduled delivery period as to the second installment of the products to be shipped to the Company in February 2021. c) eight-point thirty-three percent (8.33%) no later than 55 days prior to each scheduled delivery period as to the third installment of the products to be shipped to the Company in March 2021. d) eight-point thirty-three percent (8.33%) no later than 55 days prior to each scheduled delivery period as to the fourth installment of the products to be shipped to the Company in April 2021. e) eight-point thirty-three percent (8.33%) no later than 55 days prior to each scheduled delivery period as to the fifth installment of the products to be shipped to the Company in May 2021. f) eight-point thirty-three percent (8.33%) no later than 55 days prior to each scheduled delivery period as to the sixth installment of the products to be shipped to the Company in June 2021. Subject to the timely payment of the purchase price, Bitmain shall deliver products according to the following schedule: 1,500 Units on or before January 31, 2021; and 1,800 units on or before each of February 28, 2021; March 31, 2021; April 30, 2021, May 31, 2021 and June 30, 2021. As of April 6, 2020, the Company received notice from the Nasdaq Capital Market (the “Capital Market”) that the Company has failed to maintain a minimum closing bid price of $1.00 per share of its Common Stock over the last consecutive 30 business days based upon the closing bid price for its common stock as required by Rule 5550(a)(2). However, the Rules also provide the Company a compliance period of 180 calendar days in which to regain compliance during which time it must maintain a minimum closing bid price of at least $1.00 per share for a minimum period of 10 consecutive business days, which must be completed by October 5, 2020. On April 20, 2020, the Company received a further notice from the Nasdaq Capital Market that the Company’s time to maintain a minimum closing bid price of at least $1.00 per share for a minimum period of 10 consecutive business days has been extended from October 5, 2020 to December 17, 2020. In August 2020, the Company regained compliance with Rule 5550(a)(2) as the closing bid price has been in excess of $1.00 per share for the requisite time period. Liquidity and Financial Condition The Company’s consolidated condensed financial statements have been prepared assuming that it will continue as a going concern, which contemplates continuity of operations, realization of assets, and liquidation of liabilities in the normal course of business. As disclosed in Note 4, the Company has raised cash proceeds from the sale of its common stock during the nine months ended September 30, 2020 as follows: Offering Gross Proceeds Offering Costs Net Proceeds 2019 At the Market Offering Agreement $ 7.4 million $ 0.3 million $ 7.1 million 2020 Follow On Offering $ 6.9 million $ 0.6 million $ 6.3 million 2020 At the Market Offering (ongoing) $ 29.8 million $ 1.0 million $ 28.8 million As reflected in the consolidated condensed financial statements, the Company had an accumulated deficit of approximately $110.6 million at September 30, 2020, a net loss of approximately $4.997 million and approximately $3.448 million net cash used in operating activities for the nine months ended September 30, 2020. As a result, the Company believes it has sufficient cash flow for operations through ____ 202_. The impact of the worldwide spread of a novel strain of coronavirus (“COVID 19”) has been and continues to be unprecedented and unpredictable, but based on the Company’s current assessment, the Company does not expect any material impact on its long-term strategic plans, operations and its liquidity due to the worldwide spread of COVID-19. However, the Company is continuing to assess the effect on its operations by monitoring the spread of COVID-19 and the actions implemented to combat the virus throughout the world and its assessment of the impact of COVID-19 may change.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2020
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Principles of Consolidation The accompanying unaudited consolidated condensed financial statements, including the accounts of the Company’s subsidiaries, Marathon Crypto Mining, Inc., Crypto Currency Patent Holding Company and Soems Acquisition Corp., have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Certain information and disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) have been condensed or omitted pursuant to such rules and regulations. These consolidated condensed financial statements reflect all adjustments (consisting only of normal recurring adjustments) which, in the opinion of management, are necessary to present fairly the financial position, the results of operations and cash flows of the Company for the periods presented. It is suggested that these consolidated condensed financial statements be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s most recent Annual Report on Form 10-K. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full year ended December 31, 2020. Use of Estimates and Assumptions The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates made by management include, but are not limited to, estimating the useful lives of patent assets and fixed assets, the assumptions used to calculate fair value of warrants and options granted, realization of long-lived assets, deferred income taxes, unrealized tax positions and the realization of digital currencies. Significant Accounting Policies There have been no material changes to the Company’s significant accounting policies to those previously disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019. Digital Currencies Digital currencies are included in current assets in the consolidated balance sheets. Digital currencies are recorded at cost less impairment. An intangible asset with an indefinite useful life is not amortized but assessed for impairment annually, or more frequently, when events or changes in circumstances occur indicating that it is more likely than not that the indefinite-lived asset is impaired. Impairment exists when the carrying amount exceeds its fair value. In testing for impairment, the Company has the option to first perform a qualitative assessment to determine whether it is more likely than not that an impairment exists. If it is determined that it is not more likely than not that an impairment exists, a quantitative impairment test is not necessary. If the Company concludes otherwise, it is required to perform a quantitative impairment test. To the extent an impairment loss is recognized, the loss establishes the new cost basis of the asset. Subsequent reversal of impairment losses is not permitted. Halving – The bitcoin blockchain and the cryptocurrency reward for solving a block is subject to periodic incremental halving. Halving is a process designed to control the overall supply and reduce the risk of inflation in cryptocurrencies using a Proof-of-Work consensus algorithm. At a predetermined block, the mining reward is cut in half, hence the term “Halving”. The next halving for bitcoin occurred on May 12, 2020. Many factors influence the price of bitcoin and potential increases or decreases in prices in advance of or following a future halving is unknown. The following table presents the activities of the digital currencies for the nine months ended September 30, 2020 : Digital currencies at December 31, 2019 $ 1,141 Additions of digital currencies 1,713,832 Realized gain on sale of digital currencies 15,466 Sale of digital currencies (1,278,550 ) Digital currencies at September 30, 2020 $ 451,889 Fair Value of Financial Instruments The Company measures at fair value certain of its financial and non-financial assets and liabilities by using a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, essentially an exit price, based on the highest and best use of the asset or liability. The levels of the fair value hierarchy are: Level 1: Observable inputs such as quoted market prices in active markets for identical assets or liabilities Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data Level 3: Unobservable inputs for which there is little or no market data, which require the use of the reporting entity’s own assumptions. The carrying amounts reported in the consolidated balance sheet for cash, accounts receivable, accounts payable, and accrued expenses, approximate their estimated fair market value based on the short-term maturity of these instruments. The carrying value of notes payable and other long-term liabilities approximate fair value as the related interest rates approximate rates currently available to the Company. Financial assets and liabilities are classified in their entirety within the fair value hierarchy based on the lowest level of input that is significant to their fair value measurement. The Company measures the fair value of its marketable securities by taking into consideration valuations obtained from third-party pricing sources. The pricing services utilize industry standard valuation models, including both income and market-based approaches, for which all significant inputs are observable, either directly or indirectly, to estimate fair value. These inputs included reported trades of and broker-dealer quotes on the same or similar securities, issuer credit spreads, benchmark securities and other observable inputs. The following tables present information about the Company’s assets and liabilities measured at fair value on a recurring basis and the Company’s estimated level within the fair value hierarchy of those assets and liabilities as of September 30, 2020 and December 31, 2019, respectively : Fair value measured at September 30, 2020 Total carrying value at September 30, Quoted prices in active markets Significant other observable inputs Significant unobservable inputs 2020 (Level 1) (Level 2) (Level 3) Liabilities Warrant liability $ 31,500 $ - $ - $ 31,500 Fair value measured at December 31, 2019 Total carrying value at December 31, Quoted prices in active markets Significant other observable inputs Significant unobservable inputs 2019 (Level 1) (Level 2) (Level 3) Liabilities Warrant liability $ 12,849 $ - $ - $ 12,849 There were no transfers between Level 1, 2 or 3 during the nine months ended September 30, 2020. At September 30, 2020, the Company had an outstanding warrant liability in the amount of $31,500 associated with warrants that were issued in January 2017 and warrants issued related to the Convertible Notes issued in August and September of 2017. The following table rolls forward the fair value of the Company’s warrant liability, the fair value of which is determined by Level 3 inputs for the nine months ended September 30, 2020. Fair value of warrant liabilities Fair value Outstanding as of December 31, 2019 $ 12,849 Change in fair value of warrants 18,651 Outstanding as of September 30, 2020 $ 31,500 Basic and Diluted Net Loss per Share Net loss per common share is calculated in accordance with ASC Topic 260: Earnings Per Share (“ASC 260”). Basic loss per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period. The computation of diluted net loss per share does not include dilutive common stock equivalents in the weighted average shares outstanding, as they would be anti-dilutive. Securities that could potentially dilute loss per share in the future that were not included in the computation of diluted loss per share at September 30, 2020 and 2019 are as follows : As of September 30, 2020 2019 Warrants to purchase common stock 696,167 182,191 Options to purchase common stock 140,182 1,733,620 Convertible notes to exchange common stock - 312,221 Total 836,349 2,228,032 The following table sets forth the computation of basic and diluted loss per share: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2020 2019 2020 2019 Net loss attributable to common shareholders $ (1,994,417 ) $ (754,407 ) $ (5,213,544 ) $ (2,365,149 ) Denominator: Weighted average common shares - basic and diluted 31,520,736 6,372,061 18,868,967 6,353,643 Loss per common share - basic and diluted $ (0.06 ) $ (0.12 ) $ (0.28 ) $ (0.37 ) Sequencing In connection with August 14, 2017 Convertible Note financing, the Company adopted a sequencing policy whereby all future instruments may be classified as a derivative liability with the exception of instruments related to share-based compensation issued to employees or directors. This convertible note was satisfied in full during the second quarter of 2020, therefore as of September 30, 2020, no future instruments are subject to the company sequencing policy. Recent Accounting Pronouncements In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2019-12, “ Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”)” Any new accounting standards, not disclosed above, that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the financial statements upon adoption.

Deposit, Property and Equipment

Deposit, Property and Equipment and Intangible Assets	9 Months Ended
	Sep. 30, 2020
Deposit Property And Equipment And Intangible Assets
Deposit, Property and Equipment and Intangible Assets	NOTE 3 – DEPOSIT, PROPERTY AND EQUIPMENT AND INTANGIBLE ASSETS On May 11, 2020, the Company signed a Contract Addendum with Compute North, to pause and suspend services under its Colocation Agreement. This will suspend all production of Bitcoin using our S-9 miners. Halving – The bitcoin blockchain and the cryptocurrency reward for solving a block is subject to periodic incremental halving. Halving is a process designed to control the overall supply and reduce the risk of inflation in cryptocurrencies using a Proof-of-Work consensus algorithm. At a predetermined block, the mining reward is cut in half, hence the term “Halving”. The next halving for bitcoin occurred on May 12, 2020. Many factors influence the price of bitcoin and potential increases or decreases in prices in advance of or following a future halving is unknown. On May 11, 2020, the Company purchased 700 new generation M305+ASIC Miners from MicroBT for approximately $1.3 million. The 700 miners produce 80/Th and will generate 56 PH/s (petahash) of hashing power, compared to the Company’s current S-9 production of 46 PH/s. These next generation MicroBT ASIC miners are markedly more energy efficient than our existing Bitmain models. These miners were delivered to the Company’s Hosting Facility in June 2020 and are producing Bitcoins. The Company purchased 660 latest generation Bitmain S19 Pro Miners on May 12, 2020, 500 units on May 18, 2020 and an additional 500 units on June 11, 2020. These miners produce 110 TH/s and will generate 73 PH/s (petahash) of hashing power, compared to the Company’s S-9 production of 46 PH/s. The Company made the payments of approximately $4.2 million in the second quarter of 2020 and expects 660 of the 1,660 units to take delivery at its Hosting Facility in mid-August, and its hosting partner, Compute North, expects to install them within 48 hours of their arrival. The 1,000 remaining S-19 Pro Miners arrived in the 4 th On July 29, 2020, the Company announced the purchase of 700 next generation M31S+ASIC Miners from MicroBT. The miners arrived mid-August. Additionally, 660 of the 1,660 Bitmain S-19 Pro Miners previously purchased were delivered in mid-August. The 1,000 remaining S-19 Pro Miners due to arrive in the 4 th On August 13, 2020, the Company entered into a Long Term Purchase Contract with Bitmaintech PTE., LTD (“Bitmain”) for the purchase of 10,500 next generation Antminer S-19 Pro ASIC Miners The Company shall pay for the Antminers as follows: (1) Twenty percent (20%) of the total purchase price shall be paid as a nonrefundable down payment within forty-eight (48) hours of execution of the agreement. (2) The Company shall pay the twenty percent (20%) of the total purchase price prior to September 20, 2020. (3) The Company shall pay the ten percent (10%) of the total purchase price prior to October 10, 2020. (4) The Company shall pay the remaining fifty percent (50%) of the total purchase price in equal monthly installments due not less than fifty-five (55) days prior to the scheduled delivery of the Product(s) as follows: a) eight-point thirty-three percent (8.33%) no later than 55 days prior to each scheduled delivery period as to the first installment of products to be shipped to the Company in January 2021. b) eight-point thirty-three percent (8.33%) no later than 55 days prior to each scheduled delivery period as to the second installment of the products to be shipped to the Company in February 2021. c) eight-point thirty-three percent (8.33%) no later than 55 days prior to each scheduled delivery period as to the third installment of the products to be shipped to the Company in March 2021. d) eight-point thirty-three percent (8.33%) no later than 55 days prior to each scheduled delivery period as to the fourth installment of the products to be shipped to the Company in April 2021. e) eight-point thirty-three percent (8.33%) no later than 55 days prior to each scheduled delivery period as to the fifth installment of the products to be shipped to the Company in May 2021. f) eight-point thirty-three percent (8.33%) no later than 55 days prior to each scheduled delivery period as to the sixth installment of the products to be shipped to the Company in June 2021. Subject to the timely payment of the purchase price, Bitmain shall deliver products according to the following schedule: 1,500 Units on or before January 31, 2021; and 1,800 units on or before each of February 28, 2021; March 31, 2021; April 30, 2021, May 31, 2021 and June 30, 2021. As of April 6, 2020, the Company received notice from the Nasdaq Capital Market (the “Capital Market”) that the Company has failed to maintain a minimum closing bid price of $1.00 per share of its Common Stock over the last consecutive 30 business days based upon the closing bid price for its common stock as required by Rule 5550(a)(2). However, the Rules also provide the Company a compliance period of 180 calendar days in which to regain compliance during which time it must maintain a minimum closing bid price of at least $1.00 per share for a minimum period of 10 consecutive business days, which must be completed by October 5, 2020. On April 20, 2020, the Company received a further notice from the Nasdaq Capital Market that the Company’s time to maintain a minimum closing bid price of at least $1.00 per share for a minimum period of 10 consecutive business days has been extended from October 5, 2020 to December 17, 2020. In August 2020, the Company regained compliance with Rule 5550(a)(2) as the closing bid price has been in excess of $1.00 per share for the requisite time period. As of September 30, 2020, approximately $13.27 million cash paid for Miners was recorded as a deposit on the balance sheet. The components of property, equipment and intangible assets as of September 30, 2020 and December 31, 2019 are : Useful life (Years) September 30, 2020 December 31, 2019 Website 7 $ 121,787 $ 121,787 Mining equipment 2 9,845,788 7,120,505 Mining patent 17 1,210,000 1,210,000 Gross property, equipment and intangible assets 11,177,575 8,452,292 Less: Accumulated depreciation and amortization (5,475,086 ) (3,623,745 ) Property, equipment and intangible assets, net $ 5,702,489 $ 4,828,547 The Company’s depreciation expense for the three months ended September 30, 2020 and 2019 were $787,689 and $137,361, and amortization expense were $17,794 and $17,794 for the three months ended September 30, 2020 and 2019, respectively. The Company’s depreciation expense for the nine months ended September 30, 2020 and 2019 were $1.8 million and $412,083, and amortization expense were $53,382 and $53,382 for the nine months ended September 30, 2020 and 2019, respectively.

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Sep. 30, 2020
Equity [Abstract]
Stockholders' Equity	NOTE 4 - STOCKHOLDERS’ EQUITY Common Stock Follow On Offering On July 23, 2020, the Company entered into an underwriting agreement with H.C. Wainwright. The Company agreed to sell H.C. Wainwright 7,666,666 shares of its common stock, including the exercise in full by H.C. Wainwright of the option to purchase an additional 999,999 shares of common stock, at a public offering price of $0.90 per share. The gross proceeds of this offering, which closed on July 28, 2020, were approximately $6.9 million, and proceeds, net of underwriting discount and expenses of $0.6 million, were $6.3 million. Additionally, representative’s warrant to purchase 536,667 shares of our common stock with a five year term and an exercise price of $1.125 per share were issued. Shelf Registration Statement on Form S-3 and At The Market Offering Agreement On August 13, 2020, the Company’s Shelf Registration Statement on Form S-3, filed on August 6, 2020, was declared effective by the SEC, along with the Company’s At The Market Offering Agreement, entered into by the Company and H.C. Wainwright & Co., LLC, as Exhibit 1.1 to the Form S-3 (the “2020 At The Market Agreement”). This 2020 At the Market Agreement establishes an at-the-market equity program pursuant to which the Company may offer and sell shares of its common stock, par value $0.0001 per share, with an aggregate offering price of up to $100 million, from time to time as set forth in the agreement. During the nine months ended September 30, 2020, 17,712,635 shares of common stock were issued under the Company’s 2020 At The Market Agreement for total proceeds of approximately $28.8 million, net of offering costs of $1.0 million, and the Company has sold all shares possible under the Agreement. Series B Convertible Preferred Stock As of September 30, 2020, there was no share of Series B Convertible Preferred Stock outstanding. Series E Preferred Stock There was no Series E Convertible Preferred Stock outstanding as of September 30, 2020. Common Stock Warrants A summary of the status of the Company’s outstanding stock warrants and changes during the nine months ended September 30, 2020 is as follows : Number of Warrants Weighted Average Weighted Average Remaining Contractual Life Outstanding as of December 31, 2019 182,191 $ 25.04 2.8 Issued 536,667 1.13 4.8 Exercised (4,722 ) 1.13 - Expired (17,969 ) 59.14 - Outstanding as of September 30, 2020 696,167 $ 5.89 4.0 Warrants exercisable as of September 30, 2020 696,167 $ 5.89 4.0 Common Stock Options On May 5, 2020, the Compensation Committee of the Board of Directors held a meeting and approved bonuses and restricted stock option grants for Directors and Officers for their contributions to the growth of Marathon Patent Group, Inc., for the year ended December 31, 2019. Total awards to be granted amounted to 1,158,138 restricted stock units at a price of $0.43 per unit with a term of one year, vesting quarterly in equal amounts, and (ii) cash award of $105,000 to Merrick Okamoto and $54,000 to David Lieberman. In addition, the Compensation Committee agreed to cancel 1,587,500 existing stock options for Directors, Officers and outside legal counsel, and replace them with 1,587,500 restricted stock units at a price of $0.43 per unit with a term of one year, vesting quarterly in equal amounts. A summary of the stock options as of September 30, 2020 and changes during the period are presented below : Number of Shares Weighted Average Weighted Average Remaining Contractual Life Outstanding as of December 31, 2019 1,731,745 $ 5.50 7.92 Cancelled (1,587,500 ) 2.28 - Expired (4,063 ) 110.67 - Outstanding as of September 30, 2020 140,182 $ 38.92 4.38 Options vested and expected to vest as of September 30, 2020 140,182 $ 38.92 4.38 Options vested and exercisable as of September 30, 2020 140,182 $ 38.92 4.38 Restricted Stock A summary of the restricted stock award activity for the nine months ended September 30, 2020 as follows : Number of Units Weighted Average Grant Date Fair Value Nonvested at December 31, 2019 18,750 $ 6.88 Granted 2,745,639 $ 0.43 Vested (1,391,570 ) $ 0.50 Nonvested at September 30, 2020 1,372,820 $ 0.45

Debt, Commitments and Contingen

Debt, Commitments and Contingencies	9 Months Ended
	Sep. 30, 2020
Commitments and Contingencies Disclosure [Abstract]
Debt, Commitments and Contingencies	NOTE 5 - DEBT, COMMITMENTS AND CONTINGENCIES Debt consists of the following : Maturity Interest September 30, December 31, Date Rate 2020 2019 Convertible Note 9/1/2021 5 % $ - $ 999,106 Less: debt discount - - Total convertible notes, net of discount $ - $ 999,106 Total $ - $ 999,106 Less: current portion - - Long term portion $ - $ 999,106 On August 14, 2017, the Company entered into a unit purchase agreement (the “Unit Purchase Agreement”) with certain accredited investors providing for the sale of up to $5,500,000 of 5% secured convertible promissory notes (the “Convertible Notes”), which are convertible into shares of the Corporation’s common stock, and the issuance of warrants to purchase 1,718,750 shares of the Company’s Common Stock (the “Warrants”). The Convertible Notes are convertible into shares of the Company’s Common Stock at the lesser of (i) $0.80 per share or (ii) the closing bid price of the Company’s common stock on the day prior to conversion of the Convertible Note; provided that such conversion price may not be less than $0.40 per share. The Warrants have an exercise price of $4.80 per share. In two closings of the Unit Purchase Agreement, the Company issued $5,500,000 in Convertible Notes to the investors. The remaining balance of the Convertible Notes were due to mature on May 31, 2018. On February 10, 2020, in consideration of the payment of $65,000, the investor agreed to extend the maturity date to September 1, 2021, and the conversion price changed to the lower of, the closing price on the previous days close prior to the conversion request or a maximum conversion price of $1.00 and a floor of $0.80. The Company made such payment on February 11, 2020. On May 19, 2020, the Company amended the note with the investor to reduce the conversion price to $0.60 per share. During the nine months ended September 30, 2020, $999,106 remaining balance of the Convertible Notes and $215,136 of accrued and unpaid interest were converted into 2,023,739 shares of the Company’s Common Stock, and the Company recorded $364,832 of expenses pursuant to the inducement of the conversion terms. During the nine months ended September 30, 2020 and 2019, there was no amortization of debt discount. Interest expenses were $0 and $12,951 for the three months ended September 30, 2020 and 2019, respectively. Interest expenses were $20,984 and $37,363 for the nine months ended September 30, 2020 and 2019, respectively. Note Payable On May 6, 2020, the Company entered into a Paycheck Protection Program Promissory Note agreement with a bank which is providing $62,500 to the Company. The note accrues interest at a rate of 1% per annum and matures on May 6, 2022. Leases Effective June 1, 2018, the Company rented its corporate office at 1180 North Town Center Drive, Suite 100, Las Vegas, Nevada 89144, on a month to month basis. The monthly rent is $1,997. A security deposit of $3,815 has been paid. The Company also assumed a lease in connection with the mining operations in Quebec, Canada. Operating leases are included in operating lease right-of-use assets, operating lease liabilities, and noncurrent operating lease liabilities on the balance sheets . Operation lease costs are recorded on a straight-line basis within operating expenses. The Company’s total lease expense is comprised of the following : For the Three Months Ended September 30, 2020 September 30, 2019 Operating leases Operating lease cost $ 26,803 $ 26,693 Operating lease expense 26,803 26,693 Short-term lease rent expense 6,231 6,465 Total rent expense $ 33,034 $ 33,158 For the Nine Months Ended September 30, 2020 September 30, 2019 Operating leases Operating lease cost $ 79,925 $ 80,004 Operating lease expense 79,925 80,004 Short-term lease rent expense 18,295 16,413 Total rent expense $ 98,220 $ 96,417 Additional information regarding the Company’s leasing activities as a lessee is as follow: For the Nine Months Ended September 30, 2020 September 30, 2019 Operating cash flows from operating leases $ 78,796 $ 79,184 Weighted-average remaining lease term – operating leases 1.6 1.7 Weighted-average discount rate – operating leases 6.5 % 6.5 % As of September 30, 2020, contractual minimal lease payments are as follows: 2020 $ 18,112 2021 99,615 2022 27,168 Total 144,895 Less present value discount (7,337 ) Less current portion of operating lease liabilities (93,197 ) Non-current operating lease liabilities $ 44,361 Legal Proceedings Feinberg Litigation On March 27, 2018, Jeffrey Feinberg, purportedly joined by the Jeffrey L. Feinberg Personal Trust and the Jeffrey L. Feinberg Family Trust, filed a complaint against the Company and certain of its former officers and directors. The complaint was filed in the Supreme Court of the State of New York, County of New York. The plaintiffs purported to state claims under Sections 11, 12(a)(2) and 15 of the federal Securities Act of 1933 and common law claims for “actual fraud and fraudulent concealment,” constructive fraud, and negligent misrepresentation, seeking unspecified money damages (including punitive damages), as well as costs and attorneys’ fees, and equitable or injunctive relief. On June 15, 2018, the defendants filed a motion to dismiss all claims asserted in the complaint and, on July 27, 2018, the plaintiffs filed an opposition to that motion. The court heard argument on the motion and, on January 15, 2019, the court granted the motion to dismiss, allowing 30 days for the filing of an amended complaint. On February 15, 2019, Jeffrey Feinberg, individually and as trustee of the Jeffrey L. Feinberg Personal Trust, and Terrence K. Ankner, as trustee of the Jeffrey L. Feinberg Family Trust, filed an amended complaint that purports to state the same claims and seeks the same relief sought in the original complaint. On March 7 and 22, 2019, defendants filed motions to dismiss the amended complaint and on April 5, 2019, plaintiffs filed an opposition to those motions. The court heard oral argument on the motions to dismiss on July 9, 2019, and at the conclusion of the argument the court took the motions under submission. The parties are waiting for the court’s rulings on the motions to dismiss and, while the motions have been under submission, no discovery has been taken and there have been no other significant developments in the case.

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2020
Subsequent Events [Abstract]
Subsequent Events	NOTE 6 – Subsequent Events The Company has evaluated subsequent events through the date of the consolidated financial statements were available to be issued and has concluded that no such events or transactions took place that would require disclosure herein except as stated directly below. On October 6, 2020, the Company entered into a series of agreements with affiliates of Beowulf Energy LLC, a Delaware limited liability company (collectively and as applicable, “Beowulf”) and Two Point One, LLC, a Delaware limited liability company (“2Pl”; Marathon, Beowulf and 2Pl each a “Party” and, collectively, the “Parties”). Beowulf and 2Pl have been designing and developing a data center facility of up to 100-megawatts (the “Facility”) that will be located next to, and supplied energy directly from, Beowulf’s power generating station in Hardin, MT (the “Hardin Station”). The Facility is being developed in two phases to reach its 100 MW capacity, and the Hardin Station will supply the Facility exclusively with energy to operate Bitcoin mining servers. The projected build out cost for Phase I is approximately $14 million, which is front loaded as the infrastructure is being built most efficiently for the full 100 MW project. It entails high voltage equipment to break down the full 100 MW load from the generating station, and thereafter, the infrastructure cost per MW is a matter of distributing power at a container level. Assuming market conditions similar to current, the build out cost for Phase II works out to approximately $200,000 - $250,000 per MW. These are all in costs covering all equipment and labor needed starting from the power coming off the Generating Station distributed down to running the actual miners: including breakers, transformers, switches, containers, PDUs, fans, network cables, and the like. Marathon and Beowulf entered into an exclusive Power Purchase Agreement for the initial supply of 30 MW (Phase I), and up to 100 MW in the aggregate (Phase II), of energy load to the Facility at a cost of $0.028/kWh. The initial term of the Power Purchase Agreement is five years, with up to five additional three-year extensions, as mutually agreed, assuming 75% energy utilization of the initial 30 MW of energy supplied to the Facility. Marathon purchased certain mining infrastructure and equipment for the Facility from Beowulf for a purchase price of $750,000, and Marathon has the right, at no additional cost, to construct and access the Facility on land adjacent to the Hardin Station pursuant to a lease agreement with Beowulf. Beowulf and 2P1 will provide operation and maintenance services for the Facility pursuant to a Data Facility Services Agreement, in exchange for an initial issuance of 3,000,000 shares of Marathon’s common stock to each of Beowulf and 2Pl. Upon completion of Phase I, Marathon will issue to Beowulf an additional 150,000 shares of its common stock. During Phase II, Marathon will issue to Beowulf an additional 350,000 shares of its common stock – 150,000 shares upon reaching 60 MW of Facility load and 200,000 at completion of the full 100 MW of Facility load. The cost to maintain and run the Facility will be $0.006/kWh. All shares issued under the Data Facility Services Agreement are issued pursuant to transactions exempt from registration under Section 4(a)(2) of the Securities Act of 1933. Effective October 19, 2020, David Lieberman retired as the Company’s Chief Financial Officer, and Simeon Salzman was appointed Chief Financial Officer.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2020
Accounting Policies [Abstract]
Basis of Presentation and Principles of Consolidation	Basis of Presentation and Principles of Consolidation The accompanying unaudited consolidated condensed financial statements, including the accounts of the Company’s subsidiaries, Marathon Crypto Mining, Inc., Crypto Currency Patent Holding Company and Soems Acquisition Corp., have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Certain information and disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) have been condensed or omitted pursuant to such rules and regulations. These consolidated condensed financial statements reflect all adjustments (consisting only of normal recurring adjustments) which, in the opinion of management, are necessary to present fairly the financial position, the results of operations and cash flows of the Company for the periods presented. It is suggested that these consolidated condensed financial statements be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s most recent Annual Report on Form 10-K. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full year ended December 31, 2020.
Use of Estimates and Assumptions	Use of Estimates and Assumptions The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates made by management include, but are not limited to, estimating the useful lives of patent assets and fixed assets, the assumptions used to calculate fair value of warrants and options granted, realization of long-lived assets, deferred income taxes, unrealized tax positions and the realization of digital currencies.
Significant Accounting Policies	Significant Accounting Policies There have been no material changes to the Company’s significant accounting policies to those previously disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019.
Digital Currencies	Digital Currencies Digital currencies are included in current assets in the consolidated balance sheets. Digital currencies are recorded at cost less impairment. An intangible asset with an indefinite useful life is not amortized but assessed for impairment annually, or more frequently, when events or changes in circumstances occur indicating that it is more likely than not that the indefinite-lived asset is impaired. Impairment exists when the carrying amount exceeds its fair value. In testing for impairment, the Company has the option to first perform a qualitative assessment to determine whether it is more likely than not that an impairment exists. If it is determined that it is not more likely than not that an impairment exists, a quantitative impairment test is not necessary. If the Company concludes otherwise, it is required to perform a quantitative impairment test. To the extent an impairment loss is recognized, the loss establishes the new cost basis of the asset. Subsequent reversal of impairment losses is not permitted. Halving – The bitcoin blockchain and the cryptocurrency reward for solving a block is subject to periodic incremental halving. Halving is a process designed to control the overall supply and reduce the risk of inflation in cryptocurrencies using a Proof-of-Work consensus algorithm. At a predetermined block, the mining reward is cut in half, hence the term “Halving”. The next halving for bitcoin occurred on May 12, 2020. Many factors influence the price of bitcoin and potential increases or decreases in prices in advance of or following a future halving is unknown. The following table presents the activities of the digital currencies for the nine months ended September 30, 2020 : Digital currencies at December 31, 2019 $ 1,141 Additions of digital currencies 1,713,832 Realized gain on sale of digital currencies 15,466 Sale of digital currencies (1,278,550 ) Digital currencies at September 30, 2020 $ 451,889
Fair Value of Financial Instruments	Fair Value of Financial Instruments The Company measures at fair value certain of its financial and non-financial assets and liabilities by using a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, essentially an exit price, based on the highest and best use of the asset or liability. The levels of the fair value hierarchy are: Level 1: Observable inputs such as quoted market prices in active markets for identical assets or liabilities Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data Level 3: Unobservable inputs for which there is little or no market data, which require the use of the reporting entity’s own assumptions. The carrying amounts reported in the consolidated balance sheet for cash, accounts receivable, accounts payable, and accrued expenses, approximate their estimated fair market value based on the short-term maturity of these instruments. The carrying value of notes payable and other long-term liabilities approximate fair value as the related interest rates approximate rates currently available to the Company. Financial assets and liabilities are classified in their entirety within the fair value hierarchy based on the lowest level of input that is significant to their fair value measurement. The Company measures the fair value of its marketable securities by taking into consideration valuations obtained from third-party pricing sources. The pricing services utilize industry standard valuation models, including both income and market-based approaches, for which all significant inputs are observable, either directly or indirectly, to estimate fair value. These inputs included reported trades of and broker-dealer quotes on the same or similar securities, issuer credit spreads, benchmark securities and other observable inputs. The following tables present information about the Company’s assets and liabilities measured at fair value on a recurring basis and the Company’s estimated level within the fair value hierarchy of those assets and liabilities as of September 30, 2020 and December 31, 2019, respectively : Fair value measured at September 30, 2020 Total carrying value at September 30, Quoted prices in active markets Significant other observable inputs Significant unobservable inputs 2020 (Level 1) (Level 2) (Level 3) Liabilities Warrant liability $ 31,500 $ - $ - $ 31,500 Fair value measured at December 31, 2019 Total carrying value at December 31, Quoted prices in active markets Significant other observable inputs Significant unobservable inputs 2019 (Level 1) (Level 2) (Level 3) Liabilities Warrant liability $ 12,849 $ - $ - $ 12,849 There were no transfers between Level 1, 2 or 3 during the nine months ended September 30, 2020. At September 30, 2020, the Company had an outstanding warrant liability in the amount of $31,500 associated with warrants that were issued in January 2017 and warrants issued related to the Convertible Notes issued in August and September of 2017. The following table rolls forward the fair value of the Company’s warrant liability, the fair value of which is determined by Level 3 inputs for the nine months ended September 30, 2020. Fair value of warrant liabilities Fair value Outstanding as of December 31, 2019 $ 12,849 Change in fair value of warrants 18,651 Outstanding as of September 30, 2020 $ 31,500
Sequencing	Sequencing In connection with August 14, 2017 Convertible Note financing, the Company adopted a sequencing policy whereby all future instruments may be classified as a derivative liability with the exception of instruments related to share-based compensation issued to employees or directors. This convertible note was satisfied in full during the second quarter of 2020, therefore as of September 30, 2020, no future instruments are subject to the company sequencing policy.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2019-12, “ Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”)” Any new accounting standards, not disclosed above, that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the financial statements upon adoption.

Organization and Description _2

Organization and Description of Business (Tables)	9 Months Ended
	Sep. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Summary of Cash Proceeds from Sale of Common Stock	As disclosed in Note 4, the Company has raised cash proceeds from the sale of its common stock during the nine months ended September 30, 2020 as follows: Offering Gross Proceeds Offering Costs Net Proceeds 2019 At the Market Offering Agreement $ 7.4 million $ 0.3 million $ 7.1 million 2020 Follow On Offering $ 6.9 million $ 0.6 million $ 6.3 million 2020 At the Market Offering (ongoing) $ 29.8 million $ 1.0 million $ 28.8 million

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2020
Accounting Policies [Abstract]
Schedule of Activities of Digital Currencies	The following table presents the activities of the digital currencies for the nine months ended September 30, 2020 : Digital currencies at December 31, 2019 $ 1,141 Additions of digital currencies 1,713,832 Realized gain on sale of digital currencies 15,466 Sale of digital currencies (1,278,550 ) Digital currencies at September 30, 2020 $ 451,889
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis	The following tables present information about the Company’s assets and liabilities measured at fair value on a recurring basis and the Company’s estimated level within the fair value hierarchy of those assets and liabilities as of September 30, 2020 and December 31, 2019, respectively : Fair value measured at September 30, 2020 Total carrying value at September 30, Quoted prices in active markets Significant other observable inputs Significant unobservable inputs 2020 (Level 1) (Level 2) (Level 3) Liabilities Warrant liability $ 31,500 $ - $ - $ 31,500 Fair value measured at December 31, 2019 Total carrying value at December 31, Quoted prices in active markets Significant other observable inputs Significant unobservable inputs 2019 (Level 1) (Level 2) (Level 3) Liabilities Warrant liability $ 12,849 $ - $ - $ 12,849
Schedule of Fair Value of Warrant Liabilities	Fair value of warrant liabilities Fair value Outstanding as of December 31, 2019 $ 12,849 Change in fair value of warrants 18,651 Outstanding as of September 30, 2020 $ 31,500
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	Securities that could potentially dilute loss per share in the future that were not included in the computation of diluted loss per share at September 30, 2020 and 2019 are as follows : As of September 30, 2020 2019 Warrants to purchase common stock 696,167 182,191 Options to purchase common stock 140,182 1,733,620 Convertible notes to exchange common stock - 312,221 Total 836,349 2,228,032
Schedule of Computation of Basic and Diluted Loss Per Share	The following table sets forth the computation of basic and diluted loss per share: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2020 2019 2020 2019 Net loss attributable to common shareholders $ (1,994,417 ) $ (754,407 ) $ (5,213,544 ) $ (2,365,149 ) Denominator: Weighted average common shares - basic and diluted 31,520,736 6,372,061 18,868,967 6,353,643 Loss per common share - basic and diluted $ (0.06 ) $ (0.12 ) $ (0.28 ) $ (0.37 )

Deposit, Property and Equipme_2

Deposit, Property and Equipment and Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2020
Property And Equipment And Intangible Assets Tables Abstract
Schedule of Components of Property, Equipment and Intangible Assets	The components of property, equipment and intangible assets as of September 30, 2020 and December 31, 2019 are : Useful life (Years) September 30, 2020 December 31, 2019 Website 7 $ 121,787 $ 121,787 Mining equipment 2 9,845,788 7,120,505 Mining patent 17 1,210,000 1,210,000 Gross property, equipment and intangible assets 11,177,575 8,452,292 Less: Accumulated depreciation and amortization (5,475,086 ) (3,623,745 ) Property, equipment and intangible assets, net $ 5,702,489 $ 4,828,547

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	9 Months Ended
	Sep. 30, 2020
Equity [Abstract]
Summary of Outstanding Stock Warrants	A summary of the status of the Company’s outstanding stock warrants and changes during the nine months ended September 30, 2020 is as follows : Number of Warrants Weighted Average Weighted Average Remaining Contractual Life Outstanding as of December 31, 2019 182,191 $ 25.04 2.8 Issued 536,667 1.13 4.8 Exercised (4,722 ) 1.13 - Expired (17,969 ) 59.14 - Outstanding as of September 30, 2020 696,167 $ 5.89 4.0 Warrants exercisable as of September 30, 2020 696,167 $ 5.89 4.0
Summary of Stock Options	A summary of the stock options as of September 30, 2020 and changes during the period are presented below : Number of Shares Weighted Average Weighted Average Remaining Contractual Life Outstanding as of December 31, 2019 1,731,745 $ 5.50 7.92 Cancelled (1,587,500 ) 2.28 - Expired (4,063 ) 110.67 - Outstanding as of September 30, 2020 140,182 $ 38.92 4.38 Options vested and expected to vest as of September 30, 2020 140,182 $ 38.92 4.38 Options vested and exercisable as of September 30, 2020 140,182 $ 38.92 4.38
Summary of Restricted Stock Award Activity	A summary of the restricted stock award activity for the nine months ended September 30, 2020 as follows : Number of Units Weighted Average Grant Date Fair Value Nonvested at December 31, 2019 18,750 $ 6.88 Granted 2,745,639 $ 0.43 Vested (1,391,570 ) $ 0.50 Nonvested at September 30, 2020 1,372,820 $ 0.45

Debt, Commitments and Conting_2

Debt, Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2020
Commitments and Contingencies Disclosure [Abstract]
Schedule of Debt	Debt consists of the following : Maturity Interest September 30, December 31, Date Rate 2020 2019 Convertible Note 9/1/2021 5 % $ - $ 999,106 Less: debt discount - - Total convertible notes, net of discount $ - $ 999,106 Total $ - $ 999,106 Less: current portion - - Long term portion $ - $ 999,106
Schedule of Components of Lease Cost	Operation lease costs are recorded on a straight-line basis within operating expenses. The Company’s total lease expense is comprised of the following : For the Three Months Ended September 30, 2020 September 30, 2019 Operating leases Operating lease cost $ 26,803 $ 26,693 Operating lease expense 26,803 26,693 Short-term lease rent expense 6,231 6,465 Total rent expense $ 33,034 $ 33,158 For the Nine Months Ended September 30, 2020 September 30, 2019 Operating leases Operating lease cost $ 79,925 $ 80,004 Operating lease expense 79,925 80,004 Short-term lease rent expense 18,295 16,413 Total rent expense $ 98,220 $ 96,417
Schedule of Weighted Average Lease	Additional information regarding the Company’s leasing activities as a lessee is as follow: For the Nine Months Ended September 30, 2020 September 30, 2019 Operating cash flows from operating leases $ 78,796 $ 79,184 Weighted-average remaining lease term – operating leases 1.6 1.7 Weighted-average discount rate – operating leases 6.5 % 6.5 %
Schedule of Minimum Lease Payments	As of September 30, 2020, contractual minimal lease payments are as follows: 2020 $ 18,112 2021 99,615 2022 27,168 Total 144,895 Less present value discount (7,337 ) Less current portion of operating lease liabilities (93,197 ) Non-current operating lease liabilities $ 44,361

Organization and Description _3

Organization and Description of Business (Details Narrative)

Aug. 13, 2020USD ($)Integer$ / shares

Jul. 29, 2020Integer

May 12, 2020Integer

May 11, 2020USD ($)Integer

Mar. 30, 2020$ / sharesshares

Dec. 27, 2019USD ($)$ / shares

Nov. 15, 2019shares

Sep. 30, 2019USD ($)$ / sharesshares

Sep. 30, 2020USD ($)

Sep. 30, 2019USD ($)$ / shares

Sep. 30, 2020USD ($)

Sep. 30, 2019USD ($)$ / shares

Jun. 11, 2020Integer

May 18, 2020Integer

Dec. 31, 2019USD ($)

Organization And Description Of Business [Line Items]

Common stock, issued during the period, value

$ 474,808

$ 21,985,976

$ 79,817

$ 28,792,982

$ 79,817

Common stock issued during period, shares | shares

1,058,558

Common stock price | $ / shares

$ 0.90

Miners description

Subject to the timely payment of the purchase price, Bitmain shall deliver products according to the following schedule: 1,500 Units on or before January 31, 2021; and 1,800 units on or before each of February 28, 2021; March 31, 2021; April 30, 2021, May 31, 2021 and June 30, 2021.

Payments for purchase of miners

$ 13,269,670

Minimum closing bid price, description

As of April 6, 2020, the Company received notice from the Nasdaq Capital Market (the “Capital Market”) that the Company has failed to maintain a minimum closing bid price of $1.00 per share of its Common Stock over the last consecutive 30 business days based upon the closing bid price for its common stock as required by Rule 5550(a)(2). However, the Rules also provide the Company a compliance period of 180 calendar days in which to regain compliance during which time it must maintain a minimum closing bid price of at least $1.00 per share for a minimum period of 10 consecutive business days, which must be completed by October 5, 2020. On April 20, 2020, the Company received a further notice from the Nasdaq Capital Market that the Company’s time to maintain a minimum closing bid price of at least $1.00 per share for a minimum period of 10 consecutive business days has been extended from October 5, 2020 to December 17, 2020. In August 2020, the Company regained compliance with Rule 5550(a)(2) as the closing bid price has been in excess of $1.00 per share for the requisite time period.

Accumulated deficit

(110,821,050)

$ (110,821,050)

$ (105,607,506)

Net loss

$ (1,994,417)

$ (754,407)

(5,213,544)

(2,365,149)

Net cash used in operating activities

$ (3,448,220)

$ (2,201,281)

First 20% [Member]

Organization And Description Of Business [Line Items]

Description about the payment for miners

Twenty percent (20%) of the total purchase price shall be paid as a nonrefundable down payment within forty-eight (48) hours of execution of the agreement.

Second 20% [Member]

Organization And Description Of Business [Line Items]

Description about the payment for miners

The Company shall pay the twenty percent (20%) of the total purchase price prior to September 20, 2020.

10% [Member]

Organization And Description Of Business [Line Items]

Description about the payment for miners

The Company shall pay the ten percent (10%) of the total purchase price prior to October 10, 2020.

50% [Member]

Organization And Description Of Business [Line Items]

Description about the payment for miners

The Company shall pay the remaining fifty percent (50%) of the total purchase price in equal monthly installments due not less than fifty-five (55) days prior to the scheduled delivery of the Product(s).

First Installement [Member]

Organization And Description Of Business [Line Items]

Description about the payment for miners

eight-point thirty-three percent (8.33%) no later than 55 days prior to each scheduled delivery period as to the first installment of products to be shipped to the Company in January 2021.

Second Installement [Member]

Organization And Description Of Business [Line Items]

Description about the payment for miners

eight-point thirty-three percent (8.33%) no later than 55 days prior to each scheduled delivery period as to the second installment of the products to be shipped to the Company in February 2021.

Third Installement [Member]

Organization And Description Of Business [Line Items]

Description about the payment for miners

eight-point thirty-three percent (8.33%) no later than 55 days prior to each scheduled delivery period as to the third installment of the products to be shipped to the Company in March 2021.

Fourth Installement [Member]

Organization And Description Of Business [Line Items]

Description about the payment for miners

eight-point thirty-three percent (8.33%) no later than 55 days prior to each scheduled delivery period as to the fourth installment of the products to be shipped to the Company in April 2021.

Fifth Installement [Member]

Organization And Description Of Business [Line Items]

Description about the payment for miners

eight-point thirty-three percent (8.33%) no later than 55 days prior to each scheduled delivery period as to the fifth installment of the products to be shipped to the Company in May 2021.

Sixth Installement [Member]

Organization And Description Of Business [Line Items]

Description about the payment for miners

eight-point thirty-three percent (8.33%) no later than 55 days prior to each scheduled delivery period as to the sixth installment of the products to be shipped to the Company in June 2021.

Miners from MicroBT [Member]

Organization And Description Of Business [Line Items]

Common stock, issued during the period, value

$ 1,300,000

Miners description

The 700 miners produce 80/Th and will generate 56 PH/s (petahash) of hashing power, compared to the Company's current S-9 production of 46 PH/s. These next generation MicroBT ASIC miners are markedly more energy efficient than our existing Bitmain models.

Number of miners | Integer

700

700

Bitmain S19 Pro Miners [Member]

Organization And Description Of Business [Line Items]

Miners description

Additionally, 660 of the 1,660 Bitmain S-19 Pro Miners previously purchased were delivered in mid-August. The 1,000 remaining S-19 Pro Miners due to arrive in the 4th quarter will produce an additional 110 PH/s, which when installed will give the Company an aggregate Hashpower of 294 PH/s.

These miners produce 110 TH/s and will generate 73 PH/s (petahash) of hashing power, compared to the Company’s S-9 production of 46 PH/s. The Company made the payments of approximately $4.2 million in the second quarter of 2020 and expects 660 of the 1,660 units to take delivery at its Hosting Facility in mid-August, and its hosting partner, Compute North, expects to install them within 48 hours of their arrival. The 1,000 remaining S-19 Pro Miners arrived in the 4th quarter and will produce an additional 110 PH/s increasing the Company to an aggregate Hashpower of 294 PH/s.

Number of miners | Integer

660

500

500

Antminer S19 Pro ASIC Miners [Member]

Organization And Description Of Business [Line Items]

Miners description

The purchase price per unit is $2,362.00 ($2,205.63 with a 6.62% discount) for a total purchase price of $24,801,000.00 (with a 6.62% discount for a discounted price of $23,159,173.80). The parties confirm that the total hashrate of the Antminers under this agreement shall not be less than 1,155,000.00TH/s.

Number of miners | Integer

10,500

Purchase price per unit of miners | $ / shares

$ 2,362

Discounted purchase price per unit of miners | $ / shares

$ 2,205.63

Percentage of discount for the purchase of miners

6.62%

Payments for purchase of miners

$ 24,801,000

Disounted payment for purchase of miners

$ 23,159,174

Asset Purchase Agreement [Member]

Organization And Description Of Business [Line Items]

Common stock, issued during the period, value

$ 2,233,773

Common stock issued during period, shares | shares

1,276,442

Common stock percent

19.90%

SelectGreen Blockchain Ltd [Member]

Organization And Description Of Business [Line Items]

Common stock, issued during the period, value

$ 4,086,250

Common stock issued during period, shares | shares

350,250

2,335,000

Common stock price | $ / shares

$ 0.49

$ 1.75

$ 1.75

$ 1.75

Reduction in number of shares issued | shares

2,101,500

Organization and Description _4

Organization and Description of Business - Summary of Cash Proceeds from Sale of Common Stock (Details) - USD ($)	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Offering Costs	$ 963,754	$ 3,636
Net Proceeds	29,756,736	$ 83,453
2019 At the Market Offering Agreement [Member]
Gross Proceeds	7,400,000
Offering Costs	300,000
Net Proceeds	7,100,000
2020 Follow On Offering [Member]
Gross Proceeds	6,900,000
Offering Costs	600,000
Net Proceeds	6,300,000
2020 At the Market Offering (Ongoing) [Member]
Gross Proceeds	29,800,000
Offering Costs	1,000,000
Net Proceeds	$ 28,800,000

Summary of Significant Accoun_4

Summary of Significant Accounting Policies (Details Narrative)	9 Months Ended
	Sep. 30, 2020USD ($)
Accounting Policies [Abstract]
Level 1 to level 2 transfers	$ 0
Level 2 to level 1 transfers	0
Transfers Into level 3	0
Transfers out of level 3	0
Outstanding warrant liability	$ 31,500

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Schedule of Activities of Digital Currencies (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Accounting Policies [Abstract]
Digital currencies, Beginning balance			$ 1,141
Additions of digital currencies			1,713,823
Realized gain on sale of digital currencies	$ 11,206	$ (11,236)	15,466	$ 13,208
Sale of digital currencies			(1,278,550)
Digital currencies, Ending balance	$ 451,889		$ 451,889

Summary of Significant Accoun_6

Summary of Significant Accounting Policies - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Warrant liability	$ 31,500	$ 12,849
Level 1 [Member]
Warrant liability
Level 2 [Member]
Warrant liability
Level 3 [Member]
Warrant liability	$ 31,500	$ 12,849

Summary of Significant Accoun_7

Summary of Significant Accounting Policies - Schedule of Fair Value of Warrant Liabilities (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Accounting Policies [Abstract]
Fair value of warrant liabilities beginning balance			$ 12,849
Change in fair value of warrants	$ 21,875	$ (68,551)	18,651	$ 7,753
Fair value of warrant liabilities ending balance	$ 31,500		$ 31,500

Summary of Significant Accoun_8

Summary of Significant Accounting Policies - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	836,349	2,228,032
Warrants to Purchase Common Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	696,167	182,191
Options to Purchase Common Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	140,182	1,733,620
Convertible Notes to Exchange Common Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total		312,221

Summary of Significant Accoun_9

Summary of Significant Accounting Policies - Schedule of Computation of Basic and Diluted Loss Per Share (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Accounting Policies [Abstract]
Net loss attributable to common shareholders	$ (1,994,417)	$ (754,407)	$ (5,213,544)	$ (2,365,149)
Denominator: Weighted average common shares - basic and diluted	31,520,736	6,372,061	18,868,967	6,353,643
Loss per common share - basic and diluted	$ (0.06)	$ (0.12)	$ (0.28)	$ (0.37)

Deposit, Property and Equipme_3

Deposit, Property and Equipment and Intangible Assets (Details Narrative)

Aug. 13, 2020USD ($)Integer$ / shares

Jul. 29, 2020Integer

May 12, 2020Integer

May 11, 2020USD ($)Integer

Dec. 27, 2019USD ($)

Sep. 30, 2020USD ($)

Sep. 30, 2019USD ($)

Sep. 30, 2020USD ($)

Sep. 30, 2019USD ($)

Jun. 11, 2020Integer

May 18, 2020Integer

Dec. 31, 2019USD ($)

Organization And Description Of Business [Line Items]

Common stock, issued during the period, value

$ 474,808

$ 21,985,976

$ 79,817

$ 28,792,982

$ 79,817

Miners description

Subject to the timely payment of the purchase price, Bitmain shall deliver products according to the following schedule: 1,500 Units on or before January 31, 2021; and 1,800 units on or before each of February 28, 2021; March 31, 2021; April 30, 2021, May 31, 2021 and June 30, 2021.

Payments for purchase of miners

$ 13,269,670

Minimum closing bid price, description

As of April 6, 2020, the Company received notice from the Nasdaq Capital Market (the “Capital Market”) that the Company has failed to maintain a minimum closing bid price of $1.00 per share of its Common Stock over the last consecutive 30 business days based upon the closing bid price for its common stock as required by Rule 5550(a)(2). However, the Rules also provide the Company a compliance period of 180 calendar days in which to regain compliance during which time it must maintain a minimum closing bid price of at least $1.00 per share for a minimum period of 10 consecutive business days, which must be completed by October 5, 2020. On April 20, 2020, the Company received a further notice from the Nasdaq Capital Market that the Company’s time to maintain a minimum closing bid price of at least $1.00 per share for a minimum period of 10 consecutive business days has been extended from October 5, 2020 to December 17, 2020. In August 2020, the Company regained compliance with Rule 5550(a)(2) as the closing bid price has been in excess of $1.00 per share for the requisite time period.

Deposits

13,269,670

$ 13,269,670

Depreciation expense

787,689

137,361

1,797,959

412,083

Amortization expense

$ 17,794

$ 17,794

$ 53,382

$ 53,382

First 20% [Member]

Organization And Description Of Business [Line Items]

Description about payment for miners

Twenty percent (20%) of the total purchase price shall be paid as a nonrefundable down payment within forty-eight (48) hours of execution of the agreement.

Second 20% [Member]

Organization And Description Of Business [Line Items]

Description about payment for miners

The Company shall pay the twenty percent (20%) of the total purchase price prior to September 20, 2020.

10% [Member]

Organization And Description Of Business [Line Items]

Description about payment for miners

The Company shall pay the ten percent (10%) of the total purchase price prior to October 10, 2020.

50% [Member]

Organization And Description Of Business [Line Items]

Description about payment for miners

The Company shall pay the remaining fifty percent (50%) of the total purchase price in equal monthly installments due not less than fifty-five (55) days prior to the scheduled delivery of the Product(s).

First Installement [Member]

Organization And Description Of Business [Line Items]

Description about payment for miners

eight-point thirty-three percent (8.33%) no later than 55 days prior to each scheduled delivery period as to the first installment of products to be shipped to the Company in January 2021.

Second Installement [Member]

Organization And Description Of Business [Line Items]

Description about payment for miners

eight-point thirty-three percent (8.33%) no later than 55 days prior to each scheduled delivery period as to the second installment of the products to be shipped to the Company in February 2021.

Third Installement [Member]

Organization And Description Of Business [Line Items]

Description about payment for miners

eight-point thirty-three percent (8.33%) no later than 55 days prior to each scheduled delivery period as to the third installment of the products to be shipped to the Company in March 2021.

Fourth Installement [Member]

Organization And Description Of Business [Line Items]

Description about payment for miners

eight-point thirty-three percent (8.33%) no later than 55 days prior to each scheduled delivery period as to the fourth installment of the products to be shipped to the Company in April 2021.

Fifth Installement [Member]

Organization And Description Of Business [Line Items]

Description about payment for miners

eight-point thirty-three percent (8.33%) no later than 55 days prior to each scheduled delivery period as to the fifth installment of the products to be shipped to the Company in May 2021.

Sixth Installement [Member]

Organization And Description Of Business [Line Items]

Description about payment for miners

eight-point thirty-three percent (8.33%) no later than 55 days prior to each scheduled delivery period as to the sixth installment of the products to be shipped to the Company in June 2021.

Miners from MicroBT [Member]

Organization And Description Of Business [Line Items]

Common stock, issued during the period, value

$ 1,300,000

Miners description

The 700 miners produce 80/Th and will generate 56 PH/s (petahash) of hashing power, compared to the Company's current S-9 production of 46 PH/s. These next generation MicroBT ASIC miners are markedly more energy efficient than our existing Bitmain models.

Number of miners | Integer

700

700

Bitmain S19 Pro Miners [Member]

Organization And Description Of Business [Line Items]

Miners description

Additionally, 660 of the 1,660 Bitmain S-19 Pro Miners previously purchased were delivered in mid-August. The 1,000 remaining S-19 Pro Miners due to arrive in the 4th quarter will produce an additional 110 PH/s, which when installed will give the Company an aggregate Hashpower of 294 PH/s.

These miners produce 110 TH/s and will generate 73 PH/s (petahash) of hashing power, compared to the Company’s S-9 production of 46 PH/s. The Company made the payments of approximately $4.2 million in the second quarter of 2020 and expects 660 of the 1,660 units to take delivery at its Hosting Facility in mid-August, and its hosting partner, Compute North, expects to install them within 48 hours of their arrival. The 1,000 remaining S-19 Pro Miners arrived in the 4th quarter and will produce an additional 110 PH/s increasing the Company to an aggregate Hashpower of 294 PH/s.

Number of miners | Integer

660

500

500

Antminer S19 Pro ASIC Miners [Member]

Organization And Description Of Business [Line Items]

Miners description

The purchase price per unit is $2,362.00 ($2,205.63 with a 6.62% discount) for a total purchase price of $24,801,000.00 (with a 6.62% discount for a discounted price of $23,159,173.80). The parties confirm that the total hashrate of the Antminers under this agreement shall not be less than 1,155,000.00TH/s.

Number of miners | Integer

10,500

Purchase price per unit of miners | $ / shares

$ 2,362

Discounted purchase price per unit of miners | $ / shares

$ 2,205.63

Percentage of discount for purchase of miners

6.62%

Payments for purchase of miners

$ 24,801,000

Disounted payment for purchase of miners

$ 23,159,174

Deposits, Property and Equipmen

Deposits, Property and Equipment and Intangible Assets - Schedule of Components of Property, Equipment and Intangible Assets (Details) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Gross property, equipment and intangible assets	$ 11,177,575	$ 8,452,292
Less: Accumulated depreciation and amortization	(5,475,086)	(3,623,745)
Property, equipment and intangible assets, net	$ 5,702,489	$ 4,828,547
Website [Member]
Useful life (Years)	7 years	7 years
Gross property, equipment and intangible assets	$ 121,787	$ 121,787
Mining Equipment [Member]
Useful life (Years)	2 years	2 years
Gross property, equipment and intangible assets	$ 9,845,788	$ 7,120,505
Mining Patent [Member]
Useful life (Years)	17 years	17 years
Gross property, equipment and intangible assets	$ 1,210,000	$ 1,210,000

Stockholders' Equity (Details N

Stockholders' Equity (Details Narrative) - USD ($)	Aug. 13, 2020	Jul. 23, 2020	May 05, 2020	Dec. 27, 2019	Nov. 15, 2019	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Offering Costs								$ 963,754	$ 3,636
Net Proceeds								$ 29,756,736	83,453
Common stock, par value						$ 0.0001		$ 0.0001		$ 0.0001
Common stock, issued during the period, value				$ 474,808		$ 21,985,976	$ 79,817	$ 28,792,982	$ 79,817
Common stock issued during period					1,058,558
Preferred stock, shares outstanding
Number of existing stock options								1,587,500
New Restricted Stock Units [Member]
Stock option granted			1,587,500
Restricted stock option price			$ 0.43
Number of options term			1 year
Series B Convertible Preferred Stock [Member]
Preferred stock, shares outstanding
Series E Convertible Preferred Stock [Member]
Preferred stock, shares outstanding
Directors and Officers [Member] | Restricted Stock Units [Member]
Stock option granted			1,158,138
Restricted stock option price			$ 0.43
Number of options term			1 year
Merrick Okamoto [Member]
Cash award			$ 105,000
David Lieberman [Member]
Cash award			$ 54,000
Underwriting Agreement [Member] | Underwriter [Member]
Sale of stock		7,666,666
Stock option granted		999,999
Shares issued price		$ 0.90
Gross Proceeds		$ 6,900,000
Offering Costs		600,000
Net Proceeds		$ 6,300,000
Warrant to purchase common stock		536,667
Warrant term		5 years
Warrant excerise price		$ 1.125
2020 At the Market Agreement [Member]
Offering Costs								$ 1,000,000
Net Proceeds								$ 28,800,000
Common stock, par value	$ 0.0001
Common stock issued during period								17,712,635
2020 At the Market Agreement [Member] | Maximum [Member]
Common stock, issued during the period, value	$ 100,000,000

Stockholders' Equity - Summary

Stockholders' Equity - Summary of Outstanding Stock Warrants (Details)	9 Months Ended
	Sep. 30, 2020$ / sharesshares
Equity [Abstract]
Number of Warrants Balance Beginning | shares	182,191
Number of Warrants Issued | shares	536,667
Number of Warrants Exercised | shares	(4,722)
Number of Warrants Expired | shares	(17,969)
Number of Warrants Balance Ending | shares	696,167
Number of Warrants Exercisable | shares	696,167
Weighted Average Exercise Price Balance Beginning | $ / shares	$ 25.04
Weighted Average Exercise Price Issued | $ / shares	1.13
Weighted Average Exercise Price Exercised | $ / shares	1.13
Weighted Average Exercise Price Expired | $ / shares	59.14
Weighted Average Exercise Price Balance Ending | $ / shares	5.89
Weighted Average Exercise Price Exercisable | $ / shares	$ 5.89
Weighted Average Remaining Contractual Life (in years) Balance Beginning	2 years 9 months 18 days
Weighted Average Remaining Contractual Life (in years) of shares Issued	4 years 9 months 18 days
Weighted Average Remaining Contractual Life (in years) of shares Exercised	0 years
Weighted Average Remaining Contractual Life (in years) Balance Ending	4 years
Weighted Average Remaining Contractual Life (in years) Exercisable	4 years

Stockholders' Equity - Summar_2

Stockholders' Equity - Summary of Stock Options (Details)	9 Months Ended
	Sep. 30, 2020$ / sharesshares
Equity [Abstract]
Number of Options, Beginning Balance | shares	1,731,745
Number of Options, Cancelled | shares	(1,587,500)
Number of Options, Expired | shares	(4,063)
Number of Options, Ending Balance | shares	140,182
Number of Options Vested and Expected to Vest | shares	140,182
Number of Options Vested and Exercisable | shares	140,182
Weighted Average Exercise Price, Beginning Balance | $ / shares	$ 5.50
Weighted Average Exercise Price, Cancelled | $ / shares	2.28
Weighted Average Exercise Price, Expired | $ / shares	110.67
Weighted Average Exercise Price, Ending Balance | $ / shares	38.92
Weighted Average Exercise Price, Options vested and expected to vest | $ / shares	38.92
Weighted Average Exercise Price, Options vested and exercisable | $ / shares	$ 38.92
Weighted Average Remaining Contractual Life (in years), Beginning Balance	7 years 11 months 1 day
Weighted Average Remaining Contractual Life (in years), Cancelled	0 years
Weighted Average Remaining Contractual Life (in years), Expired	0 years
Weighted Average Remaining Contractual Life (in years), Ending Balance	4 years 4 months 17 days
Weighted Average Remaining Contractual Life (in years), Options vested and expected to vest	4 years 4 months 17 days
Weighted Average Remaining Contractual Life (in years), Options vested and exercisable	4 years 4 months 17 days

Stockholders' Equity - Summar_3

Stockholders' Equity - Summary of Restricted Stock Award Activity (Details) - Restricted Stock [Member]	9 Months Ended
	Sep. 30, 2020$ / sharesshares
Number of restricted stock, Beginning Balance | shares	18,750
Number of restricted stock, Granted | shares	2,745,639
Number of restricted stock, Vested | shares	(1,391,570)
Number of restricted stock, Ending Balance | shares	1,372,820
Weighted Average Grant Date Fair Value, Beginning Balance | $ / shares	$ 6.88
Weighted Average Grant Date Fair Value, Granted | $ / shares	0.43
Weighted Average Grant Date Fair Value, Vested | $ / shares	0.50
Weighted Average Grant Date Fair Value, Ending Balance | $ / shares	$ 0.45

Debt, Commitments and Conting_3

Debt, Commitments and Contingencies (Details Narrative) - USD ($)	May 06, 2020	Feb. 10, 2020	Jun. 01, 2018	Aug. 14, 2017	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019	May 19, 2020
Debt interest rate					5.00%		5.00%		5.00%
Debt maturity date							Sep. 1, 2021		Sep. 1, 2021
Convertible notes payable					$ 999,106		$ 999,106
Accured and unpaid interest					215,136		$ 215,136
Debt instrument, conversion of debt, shares							2,023,739
Debt instrument, conversion of debt,							$ 364,832
Amortization of debt discount
Interest expense						$ 12,591	20,984	37,363
Note payable					62,500		62,500
Monthly rental payment			$ 1,997		$ 33,034	$ 33,158	$ 98,220	$ 96,417
Security deposit			$ 3,815
Unit Purchase Agreement [Member]
Secured convertible promissory note				$ 5,500,000
Debt interest rate				5.00%
Number of warrant to purchase shares of common stock				1,718,750
Debt conversion, description				The Convertible Notes are convertible into shares of the Company's Common Stock at the lesser of (i) $0.80 per share or (ii) the closing bid price of the Company's common stock on the day prior to conversion of the Convertible Note; provided that such conversion price may not be less than $0.40 per share.
Debt conversion price per share				$ 0.80
Warrant exercise price per share				$ 4.80
Unit Purchase Agreement [Member] | Investor [Member]
Secured convertible promissory note				$ 5,500,000
Debt conversion, description		Conversion price changed to the lower of, the closing price on the previous days close prior to the conversion request or a maximum conversion price of $1.00 and a floor of $0.80. The Company made such payment on February 11, 2020.
Debt conversion price per share		$ 1								$ 0.60
Debt maturity date		Sep. 1, 2021		May 31, 2018
Consideration payment		$ 65,000
Promissory Note Agreement [Member]
Debt interest rate	1.00%
Debt maturity date	May 6, 2022
Note payable	$ 62,500

Debt, Commitments and Conting_4

Debt, Commitments and Contingencies - Schedule of Debt (Details) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Maturity date	Sep. 1, 2021	Sep. 1, 2021
Interest rate	5.00%	5.00%
Convertible Note		$ 999,106
Less: debt discount
Total Convertible notes, net of discount		999,106
Total		999,106
Less: current portion
Long term portion	$ 62,500

Debt, Commitments and Conting_5

Debt, Commitments and Contingencies - Schedule of Components of Lease Cost (Details) - USD ($)	Jun. 01, 2018	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
Operating lease cost		$ 26,803	$ 26,693	$ 79,925	$ 80,004
Operating lease expense		26,803	26,693	79,925	80,004
Short-term lease rent expense		6,231	6,465	18,295	16,413
Total rent expense	$ 1,997	$ 33,034	$ 33,158	$ 98,220	$ 96,417

Debt, Commitments and Conting_6

Debt, Commitments and Contingencies - Schedule of Weighted Average Lease (Details) - USD ($)	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Jun. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
Operating cash flows from operating leases	$ 78,796	$ 79,184
Weighted-average remaining lease term - operating leases	1 year 7 months 6 days		1 year 8 months 12 days
Weighted-average discount rate - operating leases	6.50%		6.50%

Debt, Commitments and Conting_7

Debt, Commitments and Contingencies - Schedule of Minimum Lease Payments (Details) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
2020	$ 18,112
2021	99,615
2022	27,168
Total	144,895
Less present value discount	(7,337)
Less current portion of operating lease liabilities	(93,197)	$ (87,959)
Non-current operating lease liabilities	$ 44,361	$ 120,479

Subsequent Events (Details Narr

Subsequent Events (Details Narrative) - USD ($)	Oct. 06, 2020	Nov. 15, 2019	Sep. 30, 2020	Sep. 30, 2019
Purchase of mining infrastructure and equipment			$ 13,269,670
Common stock issued during period		1,058,558
Subsequent Event [Member] | Power Purchase Agreement [Member]
Term of agreement	5 years
Purchase of mining infrastructure and equipment	$ 750,000
Subsequent Event [Member] | Data Facility Services Agreement [Member]
Common stock issued during period	3,000,000
Description of share issuance	Upon completion of Phase I, Marathon will issue to Beowulf an additional 150,000 shares of its common stock. During Phase II, Marathon will issue to Beowulf an additional 350,000 shares of its common stock – 150,000 shares upon reaching 60 MW of Facility load and 200,000 at completion of the full 100 MW of Facility load. The cost to maintain and run the Facility will be $0.006/kWh.
Subsequent Event [Member] | Data Facility Services Agreement [Member] | Beowulf Energy LLC [Member]
Common stock issued during period	3,000,000
Subsequent Event [Member] | Data Facility Services Agreement [Member] | Beowulf Energy LLC [Member] | Phase I [Member]
Common stock issued during period	150,000
Subsequent Event [Member] | Data Facility Services Agreement [Member] | Beowulf Energy LLC [Member] | Phase II [Member]
Common stock issued during period	350,000
Subsequent Event [Member] | Data Facility Services Agreement [Member] | Two Point One, LLC [Member]
Common stock issued during period	3,000,000
Subsequent Event [Member] | Phase 1 [Member]
Build out cost	$ 14,000,000
Subsequent Event [Member] | Phase 2 [Member] | Minimum [Member]
Build out cost	200,000
Subsequent Event [Member] | Phase 2 [Member] | Maximum [Member]
Build out cost	$ 250,000
Subsequent Event [Member] | 60 MW of Facility Load [Member] | Data Facility Services Agreement [Member] | Beowulf Energy LLC [Member] | Phase I [Member]
Common stock issued during period	150,000
Subsequent Event [Member] | 100 MW of Facility Load [Member] | Data Facility Services Agreement [Member] | Beowulf Energy LLC [Member] | Phase I [Member]
Common stock issued during period	200,000