Marathon Digital (MARA) 10-Q 9 Aug 22 2022 Q2 Quarterly report Financial data

Cover

Cover - shares	6 Months Ended
	Jun. 30, 2022	Aug. 09, 2022
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2022
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2022
Current Fiscal Year End Date	--12-31
Entity File Number	001-36555
Entity Registrant Name	MARATHON DIGITAL HOLDINGS, INC.
Entity Central Index Key	0001507605
Entity Tax Identification Number	01-0949984
Entity Incorporation, State or Country Code	NV
Entity Address, Address Line One	1180 North Town Center Drive
Entity Address, Address Line Two	Suite 100
Entity Address, City or Town	Las Vegas
Entity Address, State or Province	NV
Entity Address, Postal Zip Code	89144
City Area Code	702
Local Phone Number	945-2773
Title of 12(b) Security	Common Stock
Trading Symbol	MARA
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		116,810,405

Consolidated Condensed Balance

Consolidated Condensed Balance Sheets - USD ($)	Jun. 30, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 86,461,467	$ 268,522,019
Restricted cash	3,200,000
Digital currencies	136,836,179	102,805,980
Digital currencies, restricted	53,558,996
Digital currencies loaned		20,437,284
Digital currencies held in fund		223,778,545
Deposits	40,006,270	34,458,347
Loan receivable	30,000,000	30,000,000
Prepaid expenses and other current assets	12,128,736	8,148,016
Total current assets	362,191,648	688,150,191
Other assets:
Property and equipment (net of accumulated depreciation and impairment charges of $55,390,407 and $21,311,461, respectively)	314,257,284	276,242,794
Assets held for sale	14,758,386
Advances to vendor	800,204,367	466,254,623
Investments	16,999,823	3,000,000
Long term prepaids		13,665,589
Right-of-use assets	1,166,049
Intangible assets (net of accumulated amortization of $280,497 at December 31, 2021)		931,226
Total other assets	1,147,385,909	760,094,232
TOTAL ASSETS	1,509,577,557	1,448,244,423
Current liabilities:
Accounts payable	51,302,960	10,772,523
Accrued expenses	3,056,538	2,154,616
Short term borrowings - revolving credit line	35,000,000
Operating lease liabilities	162,105
Accrued interest	622,917	867,260
Total current liabilities	90,144,520	13,794,399
Long-term liabilities
Convertible notes	730,347,693	728,405,922
Operating lease liabilities	1,066,564
Deferred tax liabilities	28,570,781	23,020,721
Total long-term liabilities	759,985,038	751,426,643
Commitments and Contingencies
Stockholders’ Equity:
Preferred stock, 0.0001 par value, 50,000,000 shares authorized, no shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively
Common stock, 0.0001 par value; 200,000,000 shares authorized; 113,865,235 and 102,733,273 issued and outstanding at June 30, 2022 and December 31, 2021, respectively	11,387	10,273
Additional paid-in capital	1,016,722,345	835,693,610
Accumulated other comprehensive loss	(450,719)	(450,719)
Accumulated deficit	(356,835,014)	(152,229,783)
Total stockholders’ equity	659,447,999	683,023,381
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 1,509,577,557	$ 1,448,244,423

Consolidated Condensed Balanc_2

Consolidated Condensed Balance Sheets (Parenthetical) - USD ($)	Jun. 30, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Accumulated depreciation and impairment charges	$ 55,390,407	$ 21,311,461
Finite-Lived Intangible Assets, Accumulated Amortization		$ 280,497
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	50,000,000	50,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	113,865,235	102,733,273
Common stock, shares outstanding	113,865,235	102,733,273

Consolidated Condensed Statemen

Consolidated Condensed Statement of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Income Statement [Abstract]
Total Revenues	$ 24,921,816	$ 29,321,857	$ 76,639,534	$ 38,474,672
Costs and expenses
Cost of revenues - energy, hosting and other	(16,684,759)	(4,056,168)	(29,201,710)	(5,724,646)
Cost of revenues - depreciation and amortization	(24,709,797)	(2,937,666)	(38,586,480)	(3,675,603)
Total Costs and expenses	(41,394,556)	(6,993,834)	(67,788,190)	(9,400,249)
Operating expenses
General and administrative expenses	(12,641,331)	(6,831,040)	(26,835,089)	(60,175,421)
Impairment of digital currencies	(127,590,231)	(11,078,660)	(147,141,486)	(11,740,859)
Impairment of patents			(919,363)
Total operating expenses	(140,231,562)	(17,909,700)	(174,895,938)	(71,916,280)
Other Operating income (expenses)
Change in fair value of digital currencies held in fund	(79,688,590)	(114,704,596)	(85,016,208)	17,323,121
Gain on sale of equipment	58,181,516		58,181,516
Total Other Operating (income) expenses	(21,507,074)	(114,704,596)	(26,834,692)	17,323,121
Operating income (loss)	(178,211,376)	(110,286,273)	(192,879,286)	(25,518,736)
Non-Operating income (expenses)	165,280	1,400,872	393,973	(7,250)
Interest expense	(3,748,322)	(1,203)	(6,562,358)	(2,406)
Loss before income taxes	(181,794,418)	(108,886,604)	(199,047,671)	(25,528,392)
Income tax (expense) benefit	(9,852,224)	1,984	(5,557,560)	514
Net loss	$ (191,646,642)	$ (108,884,620)	$ (204,605,231)	$ (25,527,878)
Net loss per share, basic and diluted:	$ (1.75)	$ (1.09)	$ (1.93)	$ (0.26)
Weighted average shares outstanding, basic and diluted:	109,437,293	99,466,946	106,101,762	96,922,964

Consolidated Condensed Statem_2

Consolidated Condensed Statements of Stockholders' Equity (Unaudited) - USD ($)	Preferred Stock [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	AOCI Attributable to Parent [Member]	Total
Beginning balance, value at Dec. 31, 2020		$ 8,197	$ 428,242,763	$ (116,055,277)	$ (450,719)	$ 311,744,964
Beginning balance, shares at Dec. 31, 2020		81,974,619
Stock based compensation, net of tax withholding		$ 480	51,907,098			51,907,578
Stock based compensation, net of tax withholding, shares		4,800,962
Issuance of common stock, net of offering costs/At-the-market offering		$ 1,250	237,428,370			237,429,620
Issuance of common stock, net of offering costs/At-the-market offering, shares		12,500,000
Options exercised for cash		$ 3	(3)
Options exercised for cash, shares		23,500
Warrant exercised for cash		$ 17	160,145			160,162
Warrant exercised for cash, shares		170,904
Common stock issued for cashless exercise of warrants
Common stock issued for cashless exercise of warrants, shares		2,044
Common stock issued for service and license agreements		$ 16	4,804,823			4,804,839
Common stock issued for service and license agreements, shares		162,094
Net loss				(25,527,878)		(25,527,878)
Ending balance, value at Jun. 30, 2021		$ 9,963	722,543,196	(141,583,155)	(450,719)	580,519,285
Ending balance, shares at Jun. 30, 2021		99,634,123
Beginning balance, value at Mar. 31, 2021		$ 9,937	716,862,400	(32,698,535)	(450,719)	683,723,083
Beginning balance, shares at Mar. 31, 2021		99,370,465
Stock based compensation, net of tax withholding		$ 10	875,973			875,983
Stock based compensation, net of tax withholding, shares		99,520
Common stock issued for cashless exercise of warrants
Common stock issued for cashless exercise of warrants, shares		2,044
Common stock issued for service and license agreements		$ 16	4,804,823			4,804,839
Common stock issued for service and license agreements, shares		162,094
Net loss				(108,884,620)		(108,884,620)
Ending balance, value at Jun. 30, 2021		$ 9,963	722,543,196	(141,583,155)	(450,719)	580,519,285
Ending balance, shares at Jun. 30, 2021		99,634,123
Beginning balance, value at Dec. 31, 2021		$ 10,273	835,693,610	(152,229,783)	(450,719)	683,023,381
Beginning balance, shares at Dec. 31, 2021		102,733,273
Stock based compensation, net of tax withholding		$ 38	15,407,538			15,407,576
Stock based compensation, net of tax withholding, shares		375,730
Issuance of common stock, net of offering costs/At-the-market offering		$ 1,056	161,041,218			161,042,274
Issuance of common stock, net of offering costs/At-the-market offering, shares		10,556,232
Net loss				(204,605,231)		(204,605,231)
Common stock issued for long term service contract		$ 20	4,579,979			4,579,999
Common stock issued for long term service contract, shares		200,000
Ending balance, value at Jun. 30, 2022		$ 11,387	1,016,722,345	(356,835,014)	(450,719)	659,447,999
Ending balance, shares at Jun. 30, 2022		113,865,235
Beginning balance, value at Mar. 31, 2022		$ 10,605	939,741,806	(165,188,372)	(450,719)	774,113,320
Beginning balance, shares at Mar. 31, 2022		106,051,713
Stock based compensation, net of tax withholding		$ 26	6,132,198			6,132,224
Stock based compensation, net of tax withholding, shares		256,934
Issuance of common stock, net of offering costs/At-the-market offering		$ 756	70,848,341			70,849,097
Issuance of common stock, net of offering costs/At-the-market offering, shares		7,556,588
Net loss				(191,646,642)		(191,646,642)
Common stock issued for long term service contract
Common stock issued for long term service contract, shares
Ending balance, value at Jun. 30, 2022		$ 11,387	$ 1,016,722,345	$ (356,835,014)	$ (450,719)	$ 659,447,999
Ending balance, shares at Jun. 30, 2022		113,865,235

Consolidated Condensed Statem_3

Consolidated Condensed Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$ (204,605,231)	$ (25,527,878)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation and amortization	38,586,480	3,675,603
Amortization of prepaid service contract	15,533,541	1,122,000
Gain on sale of assets	(58,181,516)
Deferred tax expense	5,550,060
Change in fair value of digital currencies held in fund	85,016,208	(17,323,121)
Impairment of digital currencies	147,141,486	11,740,859
Stock based compensation	15,451,474	55,717,561
Amortization of bond issuance costs	1,941,771
Impairment of patents	919,363
Other adjustments from operations, net	498,324	859,212
Changes in operating assets and liabilities:
Digital currencies	(76,449,636)	(38,474,672)
Deposits	(5,547,923)
Prepaid expenses and other assets	(1,268,673)	(167,906)
Accounts payable and accrued expenses	(5,180,641)	1,626,500
Accrued interest	(244,343)
Net cash used in operating activities	(40,839,256)	(6,751,842)
CASH FLOWS FROM INVESTING ACTIVITIES
Advances to vendor	(393,991,125)	(55,935,273)
Purchase of property and equipment	(13,751,596)	(66,566,839)
Sale of property and equipment	87,240,000
Purchase of digital currencies held in fund		(150,000,000)
Purchase of equity investments	(13,999,823)
Sale of digital currencies in investment fund	482,872
Net cash used in investing activities	(334,019,672)	(272,502,112)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of common stock, net of issuance costs	161,042,274	312,196,845
Net change in revolving credit agreement borrowings	35,000,000
Value of shares withheld for taxes	(43,898)	(3,809,983)
Proceeds received on exercise of options and warrants		160,163
Net cash provided by financing activities	195,998,376	308,547,025
Net (decrease) increase in cash, cash equivalents and restricted cash	(178,860,552)	29,293,071
Cash, cash equivalents and restricted cash — beginning of period	268,522,019	141,322,776
Cash, cash equivalents and restricted cash — end of period	89,661,467	170,615,847
Supplemental schedule of non-cash investing and financing activities:
Receivable due to share issuance	4,720,197
Options exercised into common stock		3
Unpaid advances to vendor	46,613,000
Operating lease assets obtained in exchange for new operating lease liabilities	1,420,370
Common stock issued for service and license agreements	$ 4,579,999	$ 4,804,839

ORGANIZATION AND DESCRIPTION OF

ORGANIZATION AND DESCRIPTION OF BUSINESS	6 Months Ended
	Jun. 30, 2022
Accounting Policies [Abstract]
ORGANIZATION AND DESCRIPTION OF BUSINESS	NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS Marathon Digital Holdings, 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 exploration and potential development of a minerals business. 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 and the Company commenced IP licensing operations, at which time the Company’s name was changed to Marathon Patent Group, Inc. The Company changed its name to Marathon Digital Holdings, Inc. on March 1, 2021. In 2018, the Company began its bitcoin mining operations by purchasing cryptocurrency mining machines and establishing a data center in Canada to mine digital assets. The Company ceased operating in Canada in 2020 and relocated all owned mining equipment out of Canada to the US. The Company has since expanded its activities in the mining of bitcoin. As of June 30, 2022, the Company no longer holds any legacy IP assets and is solely focused on the mining of bitcoin and ancillary opportunities within the bitcoin ecosystem.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2022
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying condensed consolidated financial statements are unaudited and have been prepared in accordance with the rules and regulations of the SEC. They include all adjustments that we consider necessary for a fair statement of the results for the interim periods presented. Such adjustments consisted only of normal recurring items unless otherwise disclosed. The June 30, 2022, Condensed Consolidated Balance Sheet was derived from audited financial statements but does not include all footnote disclosures from the annual financial statements. These financial statements should be read in conjunction with the financial statements and related notes included in the Company’s 2021 Annual Report. 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 (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, 2022. 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 fixed assets, the assumptions used to calculate fair value of options granted, realization of long-lived assets, deferred income taxes, unrealized tax positions and the realization of digital currencies. Restricted Cash Restricted cash principally represents those cash balances that support commercial letters of credit and are restricted from withdrawal. The following table provides a reconciliation of the total cash, cash equivalents and restricted cash reported on the Condensed Consolidated Balance Sheets to the corresponding amounts reported on the Condensed Consolidated Statements of Cash Flows. SCHEDULE OF RESTRICTED CASH As of As of Cash and cash equivalents $ 86,461,467 $ 170,615,847 Restricted cash 3,200,000 - Cash, cash equivalents and restricted cash $ 89,661,467 $ 170,615,847 Reclassifications and corrections For purposes of comparability, certain prior-period amounts have been reclassified to conform to the current-period presentation, including corrections of immaterial errors in prior periods. MARATHON DIGITAL HOLDINGS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS Digital Currencies, Digital currencies, restricted and Digital currencies loaned Digital currencies, Digital currencies, restricted and Digital currencies loaned 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. The following table presents the activities of the digital currencies for the six months ended June 30, 2022: SCHEDULE OF ACTIVITIES OF DIGITAL CURRENCIES Digital currencies, Digital currencies, restricted and Digital currencies loaned at December 31, 2021* $ 123,243,264 Additions of digital currencies 76,449,636 Digital currencies transferred from fund 137,843,761 Impairment of digital currencies (147,141,486 ) Digital currencies, Digital currencies, restricted and Digital currencies loaned at June 30, 2022 $ 190,395,175 * Includes a loan of digital currencies of 600 20,437,284 no At June 30, 2022, we held approximately 10,055 190.4 136.8 53.6 198.9 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 last halving for bitcoin occurred on May 12, 2020. For example, the current fixed reward on the bitcoin network for solving a new block is six and one quarter (6.25) bitcoins per block, which decreased from twelve and a half (12.5) bitcoins per block in May 2020. It is estimated that the number of bitcoins per block will halve again in about four (4) years. Many factors influence the price of bitcoin and potential increases or decreases in prices in advance of or following a future halving is unknown. Digital Currencies Held in Fund In 2016, the FASB issued Accounting Standards Update (ASU) 2016-01, Financial Instruments — Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, On January 25, 2021, the Company entered into a limited partnership agreement with NYDIG Digital Assets Fund III, LP (“Fund”) whereas the Fund purchased 4,812.66 150 100 The Fund qualifies and operates as an investment company for accounting purposes pursuant to the accounting and reporting guidance under ASC 946, Financial Services – Investment Companies, which requires fair value measurement of the Fund’s investments in digital assets. The digital assets held by the Fund are traded on a number of active markets globally, including the over the counter (“OTC”) market and digital asset exchanges. A fair value measurement under ASC 820 for an asset assumes that the asset is exchanged in an orderly transaction between market participants either in the principal market for the asset or, in the absence of a principal market, the most advantageous market for the asset (ASC 820-10-35-5). The fair value of the assets within the Fund are determined at the end of each reporting period based on pricing obtained from CoinDesk Bitcoin Price Index at approximately 4pm New York time. Any changes in the fair value of the assets are recorded in the Consolidated Statement of Operations under the caption “Change in fair value of investment in NYDIG fund.” The Company transferred all of its bitcoin holdings from the Fund to its own account on June 10, 2022. SCHEDULE OF DIGITAL CURRENCIES HELD IN FUND Digital currencies held in fund at December 31, 2021 $ 223,778,545 Sale of digital currencies (482,872 ) Change in fair value of digital currencies held in fund (85,016,208 ) Management expenses incurred by fund (435,704 ) Digital currencies transferred out of fund (137,843,761 ) Digital currencies held in fund at June 30, 2022 $ - Investments Investments, which may be made from time to time for strategic reasons (and not to engage in the business of investments) are included in non-current assets in the consolidated balance sheets. Investments are recorded at cost and the Company analyzes these investments value on a quarterly basis. As part of the Company’s policy to maximize return on strategic investment opportunities, while preserving capital and limiting downside risk, the Company may at times enter into equity investments or SAFE agreements. The nature and timing of the Company’s investments will depend on available capital at any particular time and the investment opportunities identified and available to the Company. On December 21, 2021 and December 30, 2021, the Company entered into two separate Simple Agreement for Future Equity (“SAFE”) agreements classified on the balance sheet as non-current assets. The SAFE agreements are accounted for as equity securities without readily determinable fair value at cost minus impairment, as adjusted for observable price changes in orderly transactions for identical or similar investment of the same issue pursuant to Topic 321 Investments – Equity Securities. 6.5 3.0 MARATHON DIGITAL HOLDINGS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS 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 and investments 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 June 30, 2022 and December 31, 2021, respectively: SCHEDULE OF ASSETS AND LIABILITIES MEASURED AT FAIR VALUE ON RECURRING BASIS Fair value measured at June 30, 2022 Total carrying value at Quoted prices in active markets Significant other observable inputs Significant unobservable inputs 2022 (Level 1) (Level 2) (Level 3) Assets Money Market Accounts $ 82,884,715 $ 82,884,715 $ - $ - Fair value measured at December 31, 2021 Total carrying value at Quoted prices in active markets Significant other observable inputs Significant unobservable inputs 2021 (Level 1) (Level 2) (Level 3) Assets Money Market Accounts $ 266,635,158 $ 266,635,158 $ - $ - Digital currencies held in fund $ 223,778,545 $ - $ 223,778,545 $ - There were no transfers among Levels 1, 2 or 3 during the three and six months ended June 30, 2022. On June 10, 2022 the company withdrew approximately 4,769 4,769 MARATHON DIGITAL HOLDINGS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS Net Income and Basic and Diluted Net Income per Share Net income per common share is calculated in accordance with ASC Topic 260: Earnings Per Share (“ASC 260”). Basic income per share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period. For the six month period ending June 30, 2022, the Company incurred a loss position and as such the computation of diluted net income (loss) per share does not include dilutive common stock equivalents in the weighted average shares outstanding, as they would be anti-dilutive. Computation of potential shares for the diluted earnings (loss) per share calculation at June 30, 2022 and 2021 are as follows: SCHEDULE OF ANTIDILUTIVE SECURITIES EXCLUDED FROM COMPUTATION OF EARNINGS PER SHARE 2022 2021 As of June 30, 2022 2021 Warrants to purchase common stock 324,375 457,837 Restricted stock 1,063,410 199,038 Options to purchase common stock - 81,120 Convertible notes to exchange common stock 9,812,955 - Total 11,200,740 737,995 The following table sets forth the computation of basic and diluted income (loss) per share: SCHEDULE OF COMPUTATION OF BASIC AND DILUTED LOSS PER SHARE 2022 2021 2022 2021 For the Three Months Ended June 30, For the Six Months Ended June 30, 2022 2021 2022 2021 Net loss attributable to common shareholders $ (191,646,642 ) $ (108,884,620 ) $ (204,605,231 ) $ (25,527,878 ) Denominator: Weighted average common shares - basic and diluted 109,437,293 99,466,946 106,101,762 96,922,964 Loss per common share - basic and diluted $ (1.75 ) $ (1.09 ) $ (1.93 ) $ (0.26 )

REVENUES FROM CONTRACTS WITH CU

REVENUES FROM CONTRACTS WITH CUSTOMERS	6 Months Ended
	Jun. 30, 2022
Revenue from Contract with Customer [Abstract]
REVENUES FROM CONTRACTS WITH CUSTOMERS	NOTE 3 – REVENUES FROM CONTRACTS WITH CUSTOMERS The Company recognizes revenue under ASC 606, Revenue from Contracts with Customers. The core principle of the revenue standard is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The following five steps are applied to achieve that core principle: ● Step 1: Identify the contract with the customer ● Step 2: Identify the performance obligations in the contract ● Step 3: Determine the transaction price ● Step 4: Allocate the transaction price to the performance obligations in the contract ● Step 5: Recognize revenue when the Company satisfies a performance obligation In order to identify the performance obligations in a contract with a customer, a company must assess the promised goods or services in the contract and identify each promised good or service that is distinct. A performance obligation meets ASC 606’s definition of a “distinct” good or service (or bundle of goods or services) if both of the following criteria are met: ● The customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer (i.e., the good or service is capable of being distinct), and ● the entity’s promise to transfer the good or service to the customer is separately identifiable from other promises in the contract (i.e., the promise to transfer the good or service is distinct within the context of the contract). If a good or service is not distinct, the good or service is combined with other promised goods or services until a bundle of goods or services is identified that is distinct. The transaction price is the amount of consideration to which an entity expects to be entitled in exchange for transferring promised goods or services to a customer. The consideration promised in a contract with a customer may include fixed amounts, variable amounts, or both. When determining the transaction price, an entity must consider the effects of all of the following: ● Variable consideration ● Constraining estimates of variable consideration ● The existence of a significant financing component in the contract ● Noncash consideration ● Consideration payable to a customer Variable consideration is included in the transaction price only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. The transaction price is allocated to each performance obligation on a relative standalone selling price basis. The transaction price allocated to each performance obligation is recognized when that performance obligation is satisfied, at a point in time or over time as appropriate. MARATHON DIGITAL HOLDINGS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS Providing computing power in bitcoin transaction verification services to the network is the only performance obligation under our arrangements with the network. The transaction consideration the Company receives, if any, is noncash consideration, which the Company measures at fair value on the date received, which is not materially different than the fair value at the time of contract inception. The consideration is all variable. Because it is not probable that a significant reversal of cumulative revenue will not occur, the consideration is constrained until the Company successfully places a block (by being the first to solve an algorithm) and the Company receives confirmation of the consideration it will receive, at which time revenue is recognized. There is no significant financing component in these transactions. Fair value of the digital asset award received is determined using the daily closing U.S. dollar spot rate of the related digital currency on the date of receipt. Expenses associated with running the digital currency mining business, such as rent and electricity cost are also recorded as cost of revenues. Depreciation on digital currency mining equipment is recorded as a component of cost of revenues. Block rewards Block rewards earned by a bitcoin miner are recognized as revenue, but the evaluation is required to determine if the block rewards earned should be recognized as revenue from contracts with customers under FASB ASC 606 or as other revenue. The Company evaluated whether its mining activities represent a contract with a customer to provide services and, determined it should recognize block rewards it receives from the network as revenue from a customer under FASB ASC 606. All relevant facts and circumstances, including the network’s protocols, were considered in determining (1) whether the Company has a contract with a customer under FASB ASC 606-10-25-2 and (2) whether its mining activities on the network meet all the criteria in FASB ASC 606-10-25-1. The inflow of bitcoin as a result of the block reward would meet the definition of revenue because it gives rise to economic benefits to the miner from rendering services or carrying out activities. Therefore, the Company may account for the block reward as revenue. Block rewards are the Company’s most significant source of revenue. Block rewards included in revenues on the statements of operations were approximately $ 24.5 26.6 75.6 34.8 Transaction Fees Transaction fees earned by the Company are recognized as revenue from customers in accordance with FASB ASC 606 and pursuant to AICPA Practice Guide “Accounting for and Auditing Digital Assets”. The transaction fees are specified in each transaction request and paid by the requester to the Company, acting as the successful miner, in exchange for the successful processing of the transaction. The requester meets the definition of a customer in FASB ASC 606 because it has contracted with the miner to obtain a service (successful mining) that is an output of the miner’s ordinary activities in exchange for consideration. A contract with a customer exists at the point when the miner successfully validates a requesting customer’s transaction to the distributed ledger. At this point, the performance obligation has been satisfied in accordance with FASB ASC 606-10-25-30. Because of this, the additional criteria in FASB ASC 606-10-25-1 would be met as follows: ● Both the requester (a customer) and the miner have approved the contract and are committed to the transaction at the point of successfully validating and adding the transaction to the distributed ledger. ● Each party’s rights, the consideration to be transferred, and the payment terms are clear. ● The transaction has commercial substance (that is, the risk, timing, or amount of the miner’s future cash flows is expected to change as a result of the contract). ● Collection of the fees is probable because it is completed as part of closing a successful block. By successfully mining a block, the miner satisfies its performance obligation to the requester and, thus, should recognize revenue at that point in time. The payment of transaction fees in bitcoin constitutes non-cash consideration under FASB ASC 606-10-32-21. This non-cash consideration is measured at its estimated fair value at contract inception - that is, the date that the criteria in FASB ASC 606-10-25-1 are met. If fair value cannot be reasonably estimated in accordance with FASB ASC 606-10-32-22, the consideration should be measured indirectly by reference to the stand-alone selling price of the miner’s services. Transaction fees were approximately $ 1.0 0.3 3.6 2.7 MARATHON DIGITAL HOLDINGS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS Pool Fees The Company is a pool operator and acts as an agent, and not as a principal. The Company did not have control over any third party contributing hashrate to its pool. It merely facilitated the contribution of hash rate by third party pool participants who could choose to join or leave a pool as they wish. As the pool operator, the Company recognized 100 From May 2021 until April 30, 2022, the Company operated a mining pool that included certain third parties. Pool fees included in revenues on the statements of operations were approximately $ 76 89 thousand 331 89 thousand

ADVANCES TO VENDORS AND DEPOSIT

ADVANCES TO VENDORS AND DEPOSITS	6 Months Ended
	Jun. 30, 2022
Advances To Vendors And Deposits
ADVANCES TO VENDORS AND DEPOSITS	NOTE 4 – ADVANCES TO VENDORS AND DEPOSITS The Company contracts with bitcoin mining server manufacturers in procuring equipment necessary for the operation of its bitcoin mining operations. A typical agreement calls for a certain percentage of the total order to be paid in advance at specific intervals, usually (1) within several days of execution of a specific contract (2) approximately six months before each shipment date and (3) approximately one month before each shipment date. We account for these payments as Advances to vendor on the balance sheet. As of June 30, 2022 and December 31, 2021, such advances totalled approximately $ 800.2 466.3 46.6 In addition, the Company contracts with other service providers for hosting of its equipment and operational support in data centers where the company’s equipment is deployed. These arrangements also call for advance payments to be made to vendors in conjunction with the contractual obligations associated with these services. We classify these payments as deposits on the balance sheet.

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	6 Months Ended
	Jun. 30, 2022
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT	NOTE 5 – PROPERTY AND EQUIPMENT The components of property and equipment as of June 30, 2022 and December 31, 2021 are: SCHEDULE OF COMPONENTS OF PROPERTY, EQUIPMENT Useful life (Years) June 30, 2022 December 31, 2021 Website 7 273,122 121,787 Mining equipment 5 186,608,915 163,868,283 Construction in Progress N/A 182,765,654 133,565,908 Mining patent 17 - 1,210,000 Gross property, equipment and intangible assets 369,647,691 298,765,978 Less: Accumulated depreciation and amortization (55,390,407 ) (21,591,958 ) Property, equipment and intangible assets, net $ 314,257,284 $ 277,174,020 The Company’s depreciation expense related to property and equipment for the three and six months ended June 30, 2022 and June 30, 2021 was $ 24,701,111 38,565,242 2,937,666 3,675,603 8,686 21,238 17,794 35,588

ASSETS HELD FOR SALE

ASSETS HELD FOR SALE	6 Months Ended
	Jun. 30, 2022
Assets Held For Sale
ASSETS HELD FOR SALE	NOTE 6 – ASSETS HELD FOR SALE On December 2, 2021, we entered into an agreement with DCRBN Ventures Development and Acquisition LLC (“DCRBN”) in which the Company agreed to sell certain equipment to DCRBN starting in April 2022, in conjunction with the development of commercial activities at the King Mountain wind farm in McCamey, TX. During the three months ended June 30, 2022, the Company sold equipment for cash proceeds totalling $ 87.2 58.2 no

STOCKHOLDERS_ EQUITY

STOCKHOLDERS’ EQUITY	6 Months Ended
	Jun. 30, 2022
Equity [Abstract]
STOCKHOLDERS’ EQUITY	NOTE 7 - STOCKHOLDERS’ EQUITY Common Stock Shelf Registration Statements on Form S-3 and At The Market Offering Agreements On February 11, 2022, we entered into an At The Market Offering Agreement, or sales agreement, with H.C. Wainwright & Co., LLC relating to shares of our common stock. In accordance with the terms of the sales agreement, we may offer and sell shares of our common stock having an aggregate offering price of up to $ 750,000,000 10,556,232 161.0 MARATHON DIGITAL HOLDINGS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS Series B Convertible Preferred Stock As of June 30, 2022, there were no Series E Preferred Stock There were no Common Stock Warrants A summary of the status of the Company’s outstanding stock warrants and changes during the six months ended June 30, 2022 is as follows: SUMMARY OF OUTSTANDING STOCK WARRANTS Number of Warrants Weighted Average Weighted Average Remaining Contractual Life Outstanding as of December 31, 2021 326,779 $ 25.54 3.5 Issued - $ - - Expired (2,404 ) $ 52.00 - Exercised - $ - - Outstanding as of June 30, 2022 324,375 $ 25.00 3.5 Warrants exercisable as of June 30, 2022 324,375 $ 25.00 3.5 The aggregate intrinsic value of warrants outstanding and exercisable at June 30, 2022 was $ - Common Stock Options As of June 30, 2022 and December 31, 2021, there were no Restricted Stock A summary of the restricted stock award activity (represented by restricted stock units (RSUs) for the six months ended June 30, 2022 as follows: Restricted Stock Units SUMMARY OF RESTRICTED STOCK AWARD ACTIVITY Number of Units Weighted Average Grant Date Fair Value Nonvested at December 31, 2021 642,094 $ 35.93 Granted 797,046 $ 36.79 Vested (375,730 ) $ 66.74 Nonvested at June 30, 2022 1,063,410 $ 25.69 During the second quarter of 2022, the Compensation Committee issued grants that will vest over the next four years 20.5 MARATHON DIGITAL HOLDINGS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS

DEBT, COMMITMENTS AND CONTINGEN

DEBT, COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2022
Debt Commitments And Contingencies
DEBT, COMMITMENTS AND CONTINGENCIES	NOTE 8 - DEBT, COMMITMENTS AND CONTINGENCIES Debt On October 1, 2021, the Company entered into a Revolving Credit and Security Agreement (the “Agreement”) with Silvergate Bank pursuant to which Silvergate has agreed to loan the Company up to $ 100 35,000,000 0 On November 18, 2021, the Company issued $ 650 1.00 Notes 97,500,000 97,500,000 As of June 30, 2022 and December 31, 2021, notes outstanding, net of unamortized discounts of approximately $ 17.2 19.1 730.3 728.4 Leases In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), and has since issued amendments thereto, related to the accounting for leases (collectively referred to as “ASC 842”). ASC 842 establishes a right-of-use, or ROU, model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. Effective January 1, 2019, the Company adopted ASU 842. The Company determines if an arrangement contains a lease at inception based on whether or not the Company has the right to control the asset during the contract period and other facts and circumstances. The Company leases office space in the United States under operating lease agreements. Office space is the Company’s only material underlying asset class under operating lease agreements. The Company has no material finance 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. Effective February 14, 2022, the Company rented an office located at Tower 101, 101 NE Third Avenue, Fort Lauderdale, Florida, 33301, for a term of 63 months. Effective March 1, 2022, the Company rented an office located at 300 Spectrum Center Drive, Irvine CA, 92618, for a term of 24 months. Effective May 1, 2022, the Company rented warehouse space located at 3306 5 th As of June 30, 2022, the Company’s right-of-use (“ROU”) assets and total lease liabilities were $ 1.2 1.2 28,790 47,555 MARATHON DIGITAL HOLDINGS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS Operation lease costs are recorded on a straight-line basis within operating expenses. The Company’s total lease expense is comprised of the following: SCHEDULE OF COMPONENTS OF LEASE COST June 30, 2022 June 30, 2021 For the Six Months Ended June 30, 2022 June 30, 2021 Operating leases Operating lease cost $ 100,808 $ 97,407 Operating lease expense 100,808 97,407 Short-term lease rent expense 14,298 14,289 Total rent expense $ 115,106 $ 111,696 June 30, 2022 June 30, 2021 For the Three Months Ended June 30, 2022 June 30, 2021 Operating leases Operating lease cost $ 74,676 $ - Operating lease expense 74,676 - Short-term lease rent expense 7,158 5,126 Total rent expense $ 81,834 $ 5,126 Additional information regarding the Company’s leasing activities as a lessee is as follow: SUMMARY OF MINIMUM LEASE PAYMENTS For the Six Months Ended June 30, 2022 June 30, 2021 Operating cash flows from operating leases $ 27,376 $ - Weighted-average remaining lease term – operating leases 4.4 - Weighted-average discount rate – operating leases 5.0 % 0.0 % As of June 30, 2022, contractual minimum lease payments are as follows for the next five years. SCHEDULE OF CONTRACTUAL MINIMUM LEASE Year Amount 2022 (remaining) 175,719 2023 357,651 2024 259,934 2025 236,696 2026 240,991 Thereafter 101,824 Total 1,372,815 Legal Proceedings Ho Matter On January 14, 2021, Plaintiff Michael Ho (“Plaintiff” or “Ho”) filed a Civil Complaint for Damages and Restitution (“Complaint”) against the Company and 10 Doe Defendants. The Complaint alleges six causes of action against the Company, (1) Breach of Written Contract; (2) Breach of Implied Contract; (3) Quasi-Contract; (4) Services Rendered; (5) Intentional Interference with Prospective Economic Relations; and (6) Negligent Interference with Prospective Economic Relations, which is the one plead against “all Defendants” and is most likely to involve later named defendants. The claims arise from the same set of facts, Ho alleges that the Company profited from commercially-sensitive information he shared with the Company and then it refused to compensate him for his role in securing the acquisition of a supplier of energy for the Company. On February 22, 2021, the Company responded to Mr. Ho’s Complaint with a general denial and the assertion of applicable affirmative defenses. Then, on February 25, 2021, the Company removed the action to the United States District Court in the Central District of California, where the action remains pending. The Company filed a motion for summary judgment/adjudication of all causes of action. On February 11, 2022, the Court granted the motion and dismissed Ho’s 2nd, 5th and 6th causes of action. Discovery is closed. The Court held a pre-trial conference on February 24, 2022, where it vacated the March 3, 2022 trial date and ordered the parties to meet and confer on a new trial date. The Court discussed the various theories of damages maintained by the parties. In its ruling on the summary judgment motion and at the pre-trial conference on February 24, 2022, the Court noted that a jury is more likely to accept $ 150,000 Information Subpoena On October 6, 2020, the Company entered into a series of agreements with multiple parties to design and build a data center for up to 100-megawatts in Hardin, MT. In conjunction therewith, the Company filed a Current Report on Form 8-K on October 13, 2020. The 8-K discloses that, pursuant to a Data Facility Services Agreement, the Company issued 6,000,000 Putative Class Action Complaint On December 17, 2021, a putative class action complaint was filed in the United States District Court for the District of Nevada, against the Company and present and former senior management. The complaint alleges securities fraud related to the disclosure of an SEC investigation previously made by the Company on November 15, 2021. Plaintiff Tad Schlatre served the complaint on the Company on March 1, 2022. Multiple alleged shareholders have moved for appointment as lead plaintiff. Those motions remain pending before the Court. MARATHON DIGITAL HOLDINGS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS Derivative Complaints On February 18, 2022, a shareholder derivative complaint was filed in the United States District Court for the District of Nevada, against current and former members of the Company’s board of directors and senior management. The complaint is based on allegations substantially similar to the allegations in the December 2021 putative class action complaint, related to the Company’s disclosure of an SEC investigation previously made by the Company on November 15, 2021. On March 4, 2022, the complaint was served on the Company. On April 4, 2022, the defendants moved to dismiss the complaint. On May 5, 2022, a second shareholder derivative complaint was filed in the United States District Court for the District of Nevada, against current and former members of the Company’s board of directors and senior management. The second shareholder derivative complaint is based on allegations substantially similar to the allegations in the February 18, 2022 derivative complaint. On May 11, 2022, the defendants moved to dismiss the second shareholder derivative complaint. On June 1, 2022, the Court entered an order consolidating the two derivative actions. A June 13, 2022 scheduling order provides for plaintiffs to file a consolidated complaint and for renewed motions to dismiss the consolidated shareholder derivative complaint. The consolidated complaint has not yet been filed. In the opinion of management, after consulting legal counsel, the ultimate disposition of these five matters will not have a material adverse effect on the Company and its related entities combined financial position, results of operations, or liquidity.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	6 Months Ended
	Jun. 30, 2022
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 9 – SUBSEQUENT EVENTS On July 5, 2022, the Company expanded certain hosting arrangements to include an additional 42 megawatts of hosting capacity at a facility near Granbury, Texas. The Company expects to have an additional 14,000 26,000 On July 12, 2022, the Company entered into an agreement to secure approximately 200 megawatts of hosting capacity for the Company’s previously purchased miners, including 90 megawatts of hosting capacity in Texas and at least 110 megawatts of hosting capacity in North Dakota. The Company expects to have 66,000 4,000 On July 15, 2022 the Federal Energy Regulatory Commission found that King Mountain Upton Wind, LLC (King Mountain) would retain its status as an exempt wholesale generator notwithstanding a proposal to share ownership of the Interconnection Facilities as tenants-in-common with a retail energy customer. This action enabled the energization of a modular data center adjacent to the Generating Facility. Approximately 69,000 On July 19, 2022, the Company sold its final shipment of equipment in accordance with its April agreement with DCRBN. The equipment was sold to DCRBN in conjunction with the development of commercial activities at the King Mountain wind farm in McCamey, TX. The Company recorded cash proceeds totalling $ 43.6 28.8 On July 28, 2022 the Company terminated its power purchase agreements and commenced the acceleration of its exit from Hardin. As a result, the Company further accelerated the cost of a prepaid service contract ($ 7.2 13.1 MARATHON DIGITAL HOLDINGS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS On July 28, 2022, the Company entered into a Revolving Credit and Security Agreement (the “Agreement”) with Silvergate Bank (the “Bank”) pursuant to which Silvergate has agreed to loan the Company up to $ 100,000,000 100,000,000 Initial Term: Termination is on August 5, 2024 Availability: The RLOC shall be made available from time to time to the Company for periodic draws (provided no event of default then exists) from its closing date up to and including the termination date of the Agreement. Origination Fee: 0.35 350,000 Unused Commitment Fee: 0.25 Renewal: The RLOC may be renewed annually by agreement between the Bank and the Company, subject to (without limitation): (i) Company makes a request for renewal, in writing, no less than sixty (60) days prior to the then current maturity date, (ii) no event of default then exists, (iii) Company provides all necessary documentation to extend the RLOC, (iv) Company has paid all applicable fees related to the loan renewal, Interest Rate and Payments: Interest only to be paid monthly, with principal all due at maturity. The interest rate is defined as the higher of (i) the Floor Rate and (ii) Prime Rate plus the Applicable Margin. “Floor Rate” shall mean, as of any date of determination: (a) five and one-quarter percent (5.25%) for any days during an Interest Period the LTV Ratio is less than forty percent (40%), (b) six percent (6.00%) for any days during an Interest Period the LTV Ratio is greater than or equal to forty percent (40%) and less than fifty-five percent (55%), and (c) six and three-quarter percent (6.75%) for any day. The Applicable Margin means at any time: (a) one and one-quarter percent (1.25%) for any days during an Interest Period the LTV Ratio is less than forty (40%), (b) two percent (2.00%) for any days during an Interest Period the LTV Ratio is greater than or equal to 40% and less than fifty-five percent (55%), and (c) two and three-quarter percent (2.75%) for any days during an Interest Period the LTV Ratio is greater than or equal to fifty-five percent (55%). Collateral: The RLOC will be secured by a pledge of a sufficient amount of Company’s right, title and interest in and to bitcoin stored in a custody account for the benefit of the Bank (the “Collateral Account”). the Bank will establish a Collateral Account with a regulated custodial entity (the “Custodian”) that has been approved by the Bank. the Bank and Custodian will have a custodial agreement to perfect the security interest in the pledged Collateral Account which, among other things, allows for 1) the Bank to monitor the balance of the Collateral Account and 2) allows the Bank to have exclusive control over the Collateral Account including liquidation of the collateral in the event of Company’s default under the terms of the RLOC. the Bank may also file a UCC financing statement on the pledged collateral. Minimum Advance Rate: At origination, the Company must ensure the Collateral Account balance has sufficient bitcoin to cause a Loan to Value (the “LTV”) ratio of 65 75 Covenants: The Company must maintain a minimum adjusted net worth of $ 350,000,000 25,000,000 On that same date, the Company entered into a Term Credit and Security Agreement (“Term Loan Agreement”) and Term Credit Note with the Bank with the following terms: Initial Term: Termination is on August 5, 2024 Availability: Up to $ 100,000,000 50,000,000 50,000,000 Fees: An origination fee of $ 150,000 250,000 Interest Rate and Payments: Interest, which shall be due on the principal amount of the loan, at the higher of 5.75 1.75 Collateral: The Term Loan will be secured by a pledge of a sufficient amount of Company’s right, title and interest in and to bitcoin stored in a custody account for the benefit of the Bank (the “Collateral Account”). the Bank will establish a Collateral Account with a regulated custodial entity (the “Custodian”) that has been approved by the Bank. the Bank and Custodian will have a custodial agreement to perfect the security interest in the pledged Collateral Account which, among other things, allows for 1) the Bank to monitor the balance of the Collateral Account and 2) allows the Bank to have exclusive control over the Collateral Account including liquidation of the collateral in the event of Company’s default under the terms of the Term Loan. the Bank may also file a UCC financing statement on the pledged collateral. Covenants: The Company must maintain a minimum adjusted net worth of $ 350,000,000 25,000,000

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2022
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 (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, 2022.
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 fixed assets, the assumptions used to calculate fair value of options granted, realization of long-lived assets, deferred income taxes, unrealized tax positions and the realization of digital currencies.
Restricted Cash	Restricted Cash Restricted cash principally represents those cash balances that support commercial letters of credit and are restricted from withdrawal. The following table provides a reconciliation of the total cash, cash equivalents and restricted cash reported on the Condensed Consolidated Balance Sheets to the corresponding amounts reported on the Condensed Consolidated Statements of Cash Flows. SCHEDULE OF RESTRICTED CASH As of As of Cash and cash equivalents $ 86,461,467 $ 170,615,847 Restricted cash 3,200,000 - Cash, cash equivalents and restricted cash $ 89,661,467 $ 170,615,847
Reclassifications and corrections	Reclassifications and corrections For purposes of comparability, certain prior-period amounts have been reclassified to conform to the current-period presentation, including corrections of immaterial errors in prior periods. MARATHON DIGITAL HOLDINGS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
Digital Currencies, Digital currencies, restricted and Digital currencies loaned	Digital Currencies, Digital currencies, restricted and Digital currencies loaned Digital currencies, Digital currencies, restricted and Digital currencies loaned 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. The following table presents the activities of the digital currencies for the six months ended June 30, 2022: SCHEDULE OF ACTIVITIES OF DIGITAL CURRENCIES Digital currencies, Digital currencies, restricted and Digital currencies loaned at December 31, 2021* $ 123,243,264 Additions of digital currencies 76,449,636 Digital currencies transferred from fund 137,843,761 Impairment of digital currencies (147,141,486 ) Digital currencies, Digital currencies, restricted and Digital currencies loaned at June 30, 2022 $ 190,395,175 * Includes a loan of digital currencies of 600 20,437,284 no At June 30, 2022, we held approximately 10,055 190.4 136.8 53.6 198.9 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 last halving for bitcoin occurred on May 12, 2020. For example, the current fixed reward on the bitcoin network for solving a new block is six and one quarter (6.25) bitcoins per block, which decreased from twelve and a half (12.5) bitcoins per block in May 2020. It is estimated that the number of bitcoins per block will halve again in about four (4) years. Many factors influence the price of bitcoin and potential increases or decreases in prices in advance of or following a future halving is unknown.
Digital Currencies Held in Fund	Digital Currencies Held in Fund In 2016, the FASB issued Accounting Standards Update (ASU) 2016-01, Financial Instruments — Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, On January 25, 2021, the Company entered into a limited partnership agreement with NYDIG Digital Assets Fund III, LP (“Fund”) whereas the Fund purchased 4,812.66 150 100 The Fund qualifies and operates as an investment company for accounting purposes pursuant to the accounting and reporting guidance under ASC 946, Financial Services – Investment Companies, which requires fair value measurement of the Fund’s investments in digital assets. The digital assets held by the Fund are traded on a number of active markets globally, including the over the counter (“OTC”) market and digital asset exchanges. A fair value measurement under ASC 820 for an asset assumes that the asset is exchanged in an orderly transaction between market participants either in the principal market for the asset or, in the absence of a principal market, the most advantageous market for the asset (ASC 820-10-35-5). The fair value of the assets within the Fund are determined at the end of each reporting period based on pricing obtained from CoinDesk Bitcoin Price Index at approximately 4pm New York time. Any changes in the fair value of the assets are recorded in the Consolidated Statement of Operations under the caption “Change in fair value of investment in NYDIG fund.” The Company transferred all of its bitcoin holdings from the Fund to its own account on June 10, 2022. SCHEDULE OF DIGITAL CURRENCIES HELD IN FUND Digital currencies held in fund at December 31, 2021 $ 223,778,545 Sale of digital currencies (482,872 ) Change in fair value of digital currencies held in fund (85,016,208 ) Management expenses incurred by fund (435,704 ) Digital currencies transferred out of fund (137,843,761 ) Digital currencies held in fund at June 30, 2022 $ - Investments Investments, which may be made from time to time for strategic reasons (and not to engage in the business of investments) are included in non-current assets in the consolidated balance sheets. Investments are recorded at cost and the Company analyzes these investments value on a quarterly basis. As part of the Company’s policy to maximize return on strategic investment opportunities, while preserving capital and limiting downside risk, the Company may at times enter into equity investments or SAFE agreements. The nature and timing of the Company’s investments will depend on available capital at any particular time and the investment opportunities identified and available to the Company. On December 21, 2021 and December 30, 2021, the Company entered into two separate Simple Agreement for Future Equity (“SAFE”) agreements classified on the balance sheet as non-current assets. The SAFE agreements are accounted for as equity securities without readily determinable fair value at cost minus impairment, as adjusted for observable price changes in orderly transactions for identical or similar investment of the same issue pursuant to Topic 321 Investments – Equity Securities. 6.5 3.0 MARATHON DIGITAL HOLDINGS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
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 and investments 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 June 30, 2022 and December 31, 2021, respectively: SCHEDULE OF ASSETS AND LIABILITIES MEASURED AT FAIR VALUE ON RECURRING BASIS Fair value measured at June 30, 2022 Total carrying value at Quoted prices in active markets Significant other observable inputs Significant unobservable inputs 2022 (Level 1) (Level 2) (Level 3) Assets Money Market Accounts $ 82,884,715 $ 82,884,715 $ - $ - Fair value measured at December 31, 2021 Total carrying value at Quoted prices in active markets Significant other observable inputs Significant unobservable inputs 2021 (Level 1) (Level 2) (Level 3) Assets Money Market Accounts $ 266,635,158 $ 266,635,158 $ - $ - Digital currencies held in fund $ 223,778,545 $ - $ 223,778,545 $ - There were no transfers among Levels 1, 2 or 3 during the three and six months ended June 30, 2022. On June 10, 2022 the company withdrew approximately 4,769 4,769 MARATHON DIGITAL HOLDINGS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
Net Income and Basic and Diluted Net Income per Share	Net Income and Basic and Diluted Net Income per Share Net income per common share is calculated in accordance with ASC Topic 260: Earnings Per Share (“ASC 260”). Basic income per share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period. For the six month period ending June 30, 2022, the Company incurred a loss position and as such the computation of diluted net income (loss) per share does not include dilutive common stock equivalents in the weighted average shares outstanding, as they would be anti-dilutive. Computation of potential shares for the diluted earnings (loss) per share calculation at June 30, 2022 and 2021 are as follows: SCHEDULE OF ANTIDILUTIVE SECURITIES EXCLUDED FROM COMPUTATION OF EARNINGS PER SHARE 2022 2021 As of June 30, 2022 2021 Warrants to purchase common stock 324,375 457,837 Restricted stock 1,063,410 199,038 Options to purchase common stock - 81,120 Convertible notes to exchange common stock 9,812,955 - Total 11,200,740 737,995 The following table sets forth the computation of basic and diluted income (loss) per share: SCHEDULE OF COMPUTATION OF BASIC AND DILUTED LOSS PER SHARE 2022 2021 2022 2021 For the Three Months Ended June 30, For the Six Months Ended June 30, 2022 2021 2022 2021 Net loss attributable to common shareholders $ (191,646,642 ) $ (108,884,620 ) $ (204,605,231 ) $ (25,527,878 ) Denominator: Weighted average common shares - basic and diluted 109,437,293 99,466,946 106,101,762 96,922,964 Loss per common share - basic and diluted $ (1.75 ) $ (1.09 ) $ (1.93 ) $ (0.26 )

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	6 Months Ended
	Jun. 30, 2022
Accounting Policies [Abstract]
SCHEDULE OF RESTRICTED CASH	SCHEDULE OF RESTRICTED CASH As of As of Cash and cash equivalents $ 86,461,467 $ 170,615,847 Restricted cash 3,200,000 - Cash, cash equivalents and restricted cash $ 89,661,467 $ 170,615,847
SCHEDULE OF ACTIVITIES OF DIGITAL CURRENCIES	The following table presents the activities of the digital currencies for the six months ended June 30, 2022: SCHEDULE OF ACTIVITIES OF DIGITAL CURRENCIES Digital currencies, Digital currencies, restricted and Digital currencies loaned at December 31, 2021* $ 123,243,264 Additions of digital currencies 76,449,636 Digital currencies transferred from fund 137,843,761 Impairment of digital currencies (147,141,486 ) Digital currencies, Digital currencies, restricted and Digital currencies loaned at June 30, 2022 $ 190,395,175 * Includes a loan of digital currencies of 600 20,437,284 no
SCHEDULE OF DIGITAL CURRENCIES HELD IN FUND	SCHEDULE OF DIGITAL CURRENCIES HELD IN FUND Digital currencies held in fund at December 31, 2021 $ 223,778,545 Sale of digital currencies (482,872 ) Change in fair value of digital currencies held in fund (85,016,208 ) Management expenses incurred by fund (435,704 ) Digital currencies transferred out of fund (137,843,761 ) Digital currencies held in fund at June 30, 2022 $ -
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 June 30, 2022 and December 31, 2021, respectively: SCHEDULE OF ASSETS AND LIABILITIES MEASURED AT FAIR VALUE ON RECURRING BASIS Fair value measured at June 30, 2022 Total carrying value at Quoted prices in active markets Significant other observable inputs Significant unobservable inputs 2022 (Level 1) (Level 2) (Level 3) Assets Money Market Accounts $ 82,884,715 $ 82,884,715 $ - $ - Fair value measured at December 31, 2021 Total carrying value at Quoted prices in active markets Significant other observable inputs Significant unobservable inputs 2021 (Level 1) (Level 2) (Level 3) Assets Money Market Accounts $ 266,635,158 $ 266,635,158 $ - $ - Digital currencies held in fund $ 223,778,545 $ - $ 223,778,545 $ -
SCHEDULE OF ANTIDILUTIVE SECURITIES EXCLUDED FROM COMPUTATION OF EARNINGS PER SHARE	Computation of potential shares for the diluted earnings (loss) per share calculation at June 30, 2022 and 2021 are as follows: SCHEDULE OF ANTIDILUTIVE SECURITIES EXCLUDED FROM COMPUTATION OF EARNINGS PER SHARE 2022 2021 As of June 30, 2022 2021 Warrants to purchase common stock 324,375 457,837 Restricted stock 1,063,410 199,038 Options to purchase common stock - 81,120 Convertible notes to exchange common stock 9,812,955 - Total 11,200,740 737,995
SCHEDULE OF COMPUTATION OF BASIC AND DILUTED LOSS PER SHARE	The following table sets forth the computation of basic and diluted income (loss) per share: SCHEDULE OF COMPUTATION OF BASIC AND DILUTED LOSS PER SHARE 2022 2021 2022 2021 For the Three Months Ended June 30, For the Six Months Ended June 30, 2022 2021 2022 2021 Net loss attributable to common shareholders $ (191,646,642 ) $ (108,884,620 ) $ (204,605,231 ) $ (25,527,878 ) Denominator: Weighted average common shares - basic and diluted 109,437,293 99,466,946 106,101,762 96,922,964 Loss per common share - basic and diluted $ (1.75 ) $ (1.09 ) $ (1.93 ) $ (0.26 )

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	6 Months Ended
	Jun. 30, 2022
Property, Plant and Equipment [Abstract]
SCHEDULE OF COMPONENTS OF PROPERTY, EQUIPMENT	The components of property and equipment as of June 30, 2022 and December 31, 2021 are: SCHEDULE OF COMPONENTS OF PROPERTY, EQUIPMENT Useful life (Years) June 30, 2022 December 31, 2021 Website 7 273,122 121,787 Mining equipment 5 186,608,915 163,868,283 Construction in Progress N/A 182,765,654 133,565,908 Mining patent 17 - 1,210,000 Gross property, equipment and intangible assets 369,647,691 298,765,978 Less: Accumulated depreciation and amortization (55,390,407 ) (21,591,958 ) Property, equipment and intangible assets, net $ 314,257,284 $ 277,174,020

STOCKHOLDERS_ EQUITY (Tables)

STOCKHOLDERS’ EQUITY (Tables)	6 Months Ended
	Jun. 30, 2022
Equity [Abstract]
SUMMARY OF OUTSTANDING STOCK WARRANTS	A summary of the status of the Company’s outstanding stock warrants and changes during the six months ended June 30, 2022 is as follows: SUMMARY OF OUTSTANDING STOCK WARRANTS Number of Warrants Weighted Average Weighted Average Remaining Contractual Life Outstanding as of December 31, 2021 326,779 $ 25.54 3.5 Issued - $ - - Expired (2,404 ) $ 52.00 - Exercised - $ - - Outstanding as of June 30, 2022 324,375 $ 25.00 3.5 Warrants exercisable as of June 30, 2022 324,375 $ 25.00 3.5 The aggregate intrinsic value of warrants outstanding and exercisable at June 30, 2022 was $ -
SUMMARY OF RESTRICTED STOCK AWARD ACTIVITY	A summary of the restricted stock award activity (represented by restricted stock units (RSUs) for the six months ended June 30, 2022 as follows: Restricted Stock Units SUMMARY OF RESTRICTED STOCK AWARD ACTIVITY Number of Units Weighted Average Grant Date Fair Value Nonvested at December 31, 2021 642,094 $ 35.93 Granted 797,046 $ 36.79 Vested (375,730 ) $ 66.74 Nonvested at June 30, 2022 1,063,410 $ 25.69

DEBT, COMMITMENTS AND CONTING_2

DEBT, COMMITMENTS AND CONTINGENCIES (Tables)	6 Months Ended
	Jun. 30, 2022
Debt Commitments And Contingencies
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: SCHEDULE OF COMPONENTS OF LEASE COST June 30, 2022 June 30, 2021 For the Six Months Ended June 30, 2022 June 30, 2021 Operating leases Operating lease cost $ 100,808 $ 97,407 Operating lease expense 100,808 97,407 Short-term lease rent expense 14,298 14,289 Total rent expense $ 115,106 $ 111,696 June 30, 2022 June 30, 2021 For the Three Months Ended June 30, 2022 June 30, 2021 Operating leases Operating lease cost $ 74,676 $ - Operating lease expense 74,676 - Short-term lease rent expense 7,158 5,126 Total rent expense $ 81,834 $ 5,126
SUMMARY OF MINIMUM LEASE PAYMENTS	Additional information regarding the Company’s leasing activities as a lessee is as follow: SUMMARY OF MINIMUM LEASE PAYMENTS For the Six Months Ended June 30, 2022 June 30, 2021 Operating cash flows from operating leases $ 27,376 $ - Weighted-average remaining lease term – operating leases 4.4 - Weighted-average discount rate – operating leases 5.0 % 0.0 %
SCHEDULE OF CONTRACTUAL MINIMUM LEASE	As of June 30, 2022, contractual minimum lease payments are as follows for the next five years. SCHEDULE OF CONTRACTUAL MINIMUM LEASE Year Amount 2022 (remaining) 175,719 2023 357,651 2024 259,934 2025 236,696 2026 240,991 Thereafter 101,824 Total 1,372,815

SCHEDULE OF RESTRICTED CASH (De

SCHEDULE OF RESTRICTED CASH (Details) - USD ($)	Jun. 30, 2022	Dec. 31, 2021
Accounting Policies [Abstract]
Cash and cash equivalents	$ 86,461,467	$ 170,615,847
Restricted cash	3,200,000
Cash, cash equivalents and restricted cash	$ 89,661,467	$ 170,615,847

SCHEDULE OF ACTIVITIES OF DIGIT

SCHEDULE OF ACTIVITIES OF DIGITAL CURRENCIES (Details) - USD ($)		6 Months Ended
		Jun. 30, 2022	Jun. 30, 2021
Accounting Policies [Abstract]
Digital currencies, Digital currencies, restricted and Digital currencies loaned, Beginning balance	[1]	$ 123,243,264
Additions of digital currencies		76,449,636
Digital currencies transferred from fund		137,843,761
Impairment of digital currencies		(147,141,486)	$ (11,740,859)
Digital currencies, Digital currencies, restricted and Digital currencies loaned, Ending balance		$ 190,395,175
[1]Includes a loan of digital currencies of 600 20,437,284 no

SCHEDULE OF ACTIVITIES OF DIG_2

SCHEDULE OF ACTIVITIES OF DIGITAL CURRENCIES (Details) (Parenthetical)	6 Months Ended
	Jun. 30, 2022 USD ($) Bitcoin
Accounting Policies [Abstract]
Digital currencies loan bitcoin | Bitcoin	600
Digital currencies loan	$ 20,437,284
Digital assets outstanding loan	$ 0

SCHEDULE OF DIGITAL CURRENCIES

SCHEDULE OF DIGITAL CURRENCIES HELD IN FUND (Details) - USD ($)		3 Months Ended		6 Months Ended
		Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Digital currencies, Digital currencies, restricted and Digital currencies loaned, Beginning balance	[1]			$ 123,243,264
Change in fair value of digital currencies held in fund		$ 79,688,590	$ 114,704,596	85,016,208	$ (17,323,121)
Digital currencies transferred out of fund				(137,843,761)
Digital currencies, Digital currencies, restricted and Digital currencies loaned, Ending balance		190,395,175		190,395,175
NYDIG Digital Assets Fund III LP [Member]
Digital currencies, Digital currencies, restricted and Digital currencies loaned, Beginning balance				223,778,545
Sale of digital currencies				(482,872)
Change in fair value of digital currencies held in fund				(85,016,208)
Management expenses incurred by fund				(435,704)
Digital currencies transferred out of fund				(137,843,761)
Digital currencies, Digital currencies, restricted and Digital currencies loaned, Ending balance
[1]Includes a loan of digital currencies of 600 20,437,284 no

SCHEDULE OF ASSETS AND LIABILIT

SCHEDULE OF ASSETS AND LIABILITIES MEASURED AT FAIR VALUE ON RECURRING BASIS (Details) - USD ($)	Jun. 30, 2022	Dec. 31, 2021
Defined Benefit Plan Disclosure [Line Items]
Money Market Accounts	$ 82,884,715	$ 266,635,158
Investment Fund		223,778,545
Fair Value, Inputs, Level 1 [Member]
Defined Benefit Plan Disclosure [Line Items]
Money Market Accounts	82,884,715	266,635,158
Investment Fund
Fair Value, Inputs, Level 2 [Member]
Defined Benefit Plan Disclosure [Line Items]
Money Market Accounts
Investment Fund		223,778,545
Fair Value, Inputs, Level 3 [Member]
Defined Benefit Plan Disclosure [Line Items]
Money Market Accounts
Investment Fund

SCHEDULE OF ANTIDILUTIVE SECURI

SCHEDULE OF ANTIDILUTIVE SECURITIES EXCLUDED FROM COMPUTATION OF EARNINGS PER SHARE (Details) - shares	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	11,200,740	737,995
Warrants To Purchase Common Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	324,375	457,837
Restricted Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	1,063,410	199,038
Options To Purchase Common Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total		81,120
Convertible Debt Securities [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	9,812,955

SCHEDULE OF COMPUTATION OF BASI

SCHEDULE OF COMPUTATION OF BASIC AND DILUTED LOSS PER SHARE (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Accounting Policies [Abstract]
Net loss attributable to common shareholders	$ (191,646,642)	$ (108,884,620)	$ (204,605,231)	$ (25,527,878)
Denominator:
Weighted average common shares - basic and diluted	109,437,293	99,466,946	106,101,762	96,922,964
Loss per common share - basic and diluted	$ (1.75)	$ (1.09)	$ (1.93)	$ (0.26)

SUMMARY OF SIGNIFICANT ACCOUN_4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative)			6 Months Ended
	Jun. 10, 2022 Bitcoin	Jan. 25, 2021 USD ($) Bitcoin	Jun. 30, 2022 USD ($) Bitcoin	Dec. 31, 2021 USD ($)
Purchae of bitcoins | Bitcoin			10,055
Aggregate purchase price			$ 190,400,000
Digital currencies			136,836,179	$ 102,805,980
Digital currencies restricted			53,558,996
Other assets fair value disclosure			190,395,175	123,243,264	[1]
Investment carrying value			6,500,000	3,000,000
Investments in bitcoin in digital assets | Bitcoin	4,769
Investments in bitcoin | Bitcoin	4,769
NYDIG Digital Assets Fund III LP [Member]
Partnership interest rate		100%
NYDIG Digital Assets Fund III LP [Member]
Purchae of bitcoins | Bitcoin		4,812.66
Aggregate purchase price		$ 150,000,000
Other assets fair value disclosure				$ 223,778,545
Selfmined Bitcoin [Member]
Other assets fair value disclosure			$ 198,900,000
[1]Includes a loan of digital currencies of 600 20,437,284 no

REVENUES FROM CONTRACTS WITH _2

REVENUES FROM CONTRACTS WITH CUSTOMERS (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Transaction fees	$ 300	$ 2,700	$ 1,000	$ 3,600
Percentage for revenue			100%
Sales [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Mining pool fees	76	89	$ 331	89
Collaborative Arrangement [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Revenues	$ 24,500	$ 26,600	$ 75,600	$ 34,800

ADVANCES TO VENDORS AND DEPOS_2

ADVANCES TO VENDORS AND DEPOSITS (Details Narrative) - USD ($)	Jun. 30, 2022	Dec. 31, 2021
Advances To Vendors And Deposits
Advances to vendor	$ 800,204,367	$ 466,254,623
Payables accrued	$ 46,600,000

SCHEDULE OF COMPONENTS OF PROPE

SCHEDULE OF COMPONENTS OF PROPERTY, EQUIPMENT (Details) - USD ($)	6 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Gross property, equipment and intangible assets	$ 369,647,691	$ 298,765,978
Less: Accumulated depreciation and amortization	(55,390,407)	(21,591,958)
Property, equipment and intangible assets, net	$ 314,257,284	277,174,020
Website [Member]
Property, Plant and Equipment [Line Items]
Useful life (Years)	7 years
Gross property, equipment and intangible assets	$ 273,122	121,787
Mining Equipment [Member]
Property, Plant and Equipment [Line Items]
Useful life (Years)	5 years
Gross property, equipment and intangible assets	$ 186,608,915	163,868,283
Construction in Progress [Member]
Property, Plant and Equipment [Line Items]
Gross property, equipment and intangible assets	$ 182,765,654	133,565,908
Mining Patent [Member]
Property, Plant and Equipment [Line Items]
Useful life (Years)	17 years
Gross property, equipment and intangible assets		$ 1,210,000

PROPERTY AND EQUIPMENT (Details

PROPERTY AND EQUIPMENT (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Property, Plant and Equipment [Abstract]
Depreciation	$ 24,701,111	$ 2,937,666	$ 38,565,242	$ 3,675,603
Amortization of Intangible Assets	$ 8,686	$ 17,794	$ 21,238	$ 35,588

ASSETS HELD FOR SALE (Details N

ASSETS HELD FOR SALE (Details Narrative) - DCRBN Ventures Development and Acquisition LLC [Member] - USD ($)	3 Months Ended	12 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Cash Proceeds from mining property	$ 87,200,000	$ 0
Realized pre-tax gain on sale of assets	$ 58,200,000

SUMMARY OF OUTSTANDING STOCK WA

SUMMARY OF OUTSTANDING STOCK WARRANTS (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Accumulated Other Comprehensive Income (Loss) [Line Items]
Number of warrants, balance beginning	326,779
Weighted average exercise price, balance beginning	$ 25.54
Weighted average remaining contractual life, balance ending	3 years 6 months	3 years 6 months
Number of warrants issued
Weighted average exercise price issued
Number of warrants expired	(2,404)
Weighted average exercise price expired	$ 52
Number of warrants exercised
Weighted average exercise price exercised
Number of warrants, balance ending	324,375	326,779
Weighted average exercise price, balance ending	$ 25	$ 25.54
Number of warrants exercisable	324,375
Weighted average exercise price exercisable	$ 25
Weighted average remaining contractual life exercisable	3 years 6 months
Warrant [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Intrinsic value of options outstanding and exercisable

SUMMARY OF RESTRICTED STOCK AWA

SUMMARY OF RESTRICTED STOCK AWARD ACTIVITY (Details) - Restricted Stock [Member]	6 Months Ended
	Jun. 30, 2022 $ / shares shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of restricted stock, beginning balance | shares	642,094
Weighted average grant date fair value, beginning balance | $ / shares	$ 35.93
Number of restricted stock, Granted | shares	797,046
Weighted average grant date fair value, Granted | $ / shares	$ 36.79
Number of restricted stock, Vested | shares	(375,730)
Weighted average vested date fair value, Vested | $ / shares	$ 66.74
Number of restricted stock, ending balance | shares	1,063,410
Weighted average grant date fair value, ending balance | $ / shares	$ 25.69

STOCKHOLDERS_ EQUITY (Details N

STOCKHOLDERS’ EQUITY (Details Narrative) - USD ($)		6 Months Ended
	Feb. 11, 2022	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Class of Stock [Line Items]
Preferred stock, shares outstanding		0		0
Share based compensation arrangement by share based payment award award vesting period1		4 years
Share based compensation		$ 15,451,474	$ 55,717,561
Share-Based Payment Arrangement, Option [Member]
Class of Stock [Line Items]
Stock options outstanding		0		0
Restricted Stock [Member]
Class of Stock [Line Items]
Share based compensation		$ 20,500,000
Series B Convertible Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, shares outstanding		0
Series E Convertible Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, shares outstanding		0
At The Market Offering Agreement [Member]
Class of Stock [Line Items]
Sale of stock shares issued in transaction		10,556,232
Offering Costs		$ 161,000,000
At The Market Offering Agreement [Member] | Maximum [Member]
Class of Stock [Line Items]
Sale of stock	$ 750,000,000

SCHEDULE OF COMPONENTS OF LEASE

SCHEDULE OF COMPONENTS OF LEASE COST (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Debt Commitments And Contingencies
Operating lease cost	$ 74,676		$ 100,808	$ 97,407
Operating lease expense	74,676		100,808	97,407
Short-term lease rent expense	7,158	5,126	14,298	14,289
Total rent expense	$ 81,834	$ 5,126	$ 115,106	$ 111,696

SUMMARY OF MINIMUM LEASE PAYMEN

SUMMARY OF MINIMUM LEASE PAYMENTS (Details) - USD ($)	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Debt Commitments And Contingencies
Operating cash flows from operating leases	$ 27,376
Weighted-average remaining lease term - operating leases	4 years 4 months 24 days
Weighted-average discount rate - operating leases	5%	0%

SCHEDULE OF CONTRACTUAL MINIMUM

SCHEDULE OF CONTRACTUAL MINIMUM LEASE (Details)	Jun. 30, 2022 USD ($)
Debt Commitments And Contingencies
2022 (remaining)	$ 175,719
2023	357,651
2024	259,934
2025	236,696
2026	240,991
Thereafter	101,824
Total	$ 1,372,815

DEBT, COMMITMENTS AND CONTING_3

DEBT, COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($)			6 Months Ended
	Feb. 24, 2022	Oct. 06, 2020	Jun. 30, 2022	Dec. 31, 2021	Nov. 23, 2021	Nov. 18, 2021	Oct. 01, 2021
Notes payable			$ 17,200,000	$ 19,100,000
Debt instrument unamortized discount			730,300,000	728,400,000
Operating lease right of use asset			1,166,049
Operating lease liabilities			162,105
Payments for Rent			28,790,000,000
Operating Lease, Right-of-Use Asset, Amortization Expense			47,555,000,000
Hardin, MT [Member]
Number of restricted stock issued		6,000,000
Plaintiff Michael Ho [Member]
Damages amount	$ 150,000
UNITED STATES
Operating lease right of use asset			1,200,000
Operating lease liabilities			1,200,000
Convertible Senior Notes Due 2026 [Member]
Debt Instrument, principal amount						$ 650,000,000
Interest rate						1%
Additional option to purchase					$ 97,500,000	$ 97,500,000
Revolving Credit And Security Agreement [Member]
Line of credit facility, maximum borrowing capacity							$ 100,000,000
Line of credit, oustanding			$ 35,000,000,000,000	$ 0

SUBSEQUENT EVENTS (Details Narr

SUBSEQUENT EVENTS (Details Narrative)	Aug. 30, 2022 Integer	Jul. 28, 2022 USD ($)	Jul. 19, 2022 USD ($)	Jul. 15, 2022 Bitcoin	Jul. 12, 2022 Integer	Jul. 05, 2022 Integer	Jun. 10, 2022 Bitcoin
Subsequent Event [Line Items]
Investments in bitcoin | Bitcoin							4,769
Subsequent Event [Member]
Subsequent Event [Line Items]
Number of mining property installed | Integer						14,000
Investments in bitcoin | Bitcoin				69,000
Subsequent Event [Member] | Revolving Credit Facility [Member]
Subsequent Event [Line Items]
Proceeds from bank loan		$ 100,000,000
Principal amount of revolving credit		$ 100,000,000
Line of credit initial term		Aug. 05, 2024
Line of credit origination fee percentage		0.35%
Loan commitment to bank, origination fee		$ 350,000
Line of credit facility unused capacity commitment fee percentage		0.25%
Line of credit commitment fee and renewal description		(i) Company makes a request for renewal, in writing, no less than sixty (60) days prior to the then current maturity date, (ii) no event of default then exists, (iii) Company provides all necessary documentation to extend the RLOC, (iv) Company has paid all applicable fees related to the loan renewal,
Line of credit interest rate descriptions		(a) five and one-quarter percent (5.25%) for any days during an Interest Period the LTV Ratio is less than forty percent (40%), (b) six percent (6.00%) for any days during an Interest Period the LTV Ratio is greater than or equal to forty percent (40%) and less than fifty-five percent (55%), and (c) six and three-quarter percent (6.75%) for any day. The Applicable Margin means at any time: (a) one and one-quarter percent (1.25%) for any days during an Interest Period the LTV Ratio is less than forty (40%), (b) two percent (2.00%) for any days during an Interest Period the LTV Ratio is greater than or equal to 40% and less than fifty-five percent (55%), and (c) two and three-quarter percent (2.75%) for any days during an Interest Period the LTV Ratio is greater than or equal to fifty-five percent (55%).
Net worth		$ 350,000,000
Minimum collateral amount		$ 25,000,000
Subsequent Event [Member] | Revolving Credit Facility [Member] | Minimum [Member]
Subsequent Event [Line Items]
Minimum Advance Rate		65%
Subsequent Event [Member] | Revolving Credit Facility [Member] | Maximum [Member]
Subsequent Event [Line Items]
Minimum Advance Rate		75%
Subsequent Event [Member] | Term Credit [Member]
Subsequent Event [Line Items]
Proceeds from bank loan		$ 50,000,000
Line of credit initial term		Aug. 05, 2024
Loan commitment to bank, origination fee		$ 150,000
Net worth		350,000,000
Minimum collateral amount		25,000,000
Maximum borrowing capacity		100,000,000
Current borrowing capacity		$ 50,000,000
Line of credit facility interest rate		5.75%
Subsequent Event [Member] | Term Credit [Member] | Prime Rate [Member]
Subsequent Event [Line Items]
Line of credit facility unused capacity commitment fee percentage		1.75%
Subsequent Event [Member] | Term Credit [Member] | Maximum [Member]
Subsequent Event [Line Items]
Loan commitment to bank, origination fee		$ 250,000
Subsequent Event [Member] | Energy Service [Member]
Subsequent Event [Line Items]
Cost of revenue		7,200,000
Cost - depreciation and amortization		$ 13,100,000
Subsequent Event [Member] | Mining Properties and Mineral Rights [Member]
Subsequent Event [Line Items]
Cash Proceeds from mining property			$ 43,600,000
Realized pre-tax gain on sale of assets			$ 28,800,000
Subsequent Event [Member] | Granbury Texas [Member]
Subsequent Event [Line Items]
Number of mining property installed | Integer						26,000
Subsequent Event [Member] | North Dakota [Member]
Subsequent Event [Line Items]
Number of mining property installed | Integer	4,000				66,000