Quarterly report pursuant to Section 13 or 15(d)

Subsequent Events

v3.20.1
Subsequent Events
3 Months Ended
Mar. 31, 2020
Subsequent Events [Abstract]  
Subsequent Events

NOTE 6 – Subsequent Events

 

The Company has evaluated subsequent events through the date of the consolidated financial statements were available to be issued and has concluded that no such events or transactions took place that would require disclosure herein except as stated directly above.

 

On May 11, 2020, the Company purchased 700 new generation M305+ASIC Miners from MicroBT. The 700 miners produce 80/Th and will generate 56 PH/s (petahash) of hashing power, compared to the company’s current S-9 production of 46 PH/s. These next generation MicroBT ASIC miners are markedly more energy efficient than our existing Bitmain models. The Company expects to take delivery at our hosting Facility by the end of May and our hosting partner, Computer North, expects to install then within 48 hours of their arrival.

 

On May 12, 2020, the Company purchased an additional 660 latest generation Bitmain S19 Pro Miners. These miners produce 110 TH/s and will generate 73 PH/s (petahash) of hashing power, bringing the company’s total Hashrate to 129 PH/s compared to the Company’s S-9 production of 46 PH/s. The company expects to take delivery at our Hosting Facility by the end of July and our hosting partner, Compute North, expects to install them within 48 hours of their arrival.

 

On May 11, 2020, the Company signed a Contract Addendum with Compute North, to pause and suspend services under its Colocation Agreement. This will suspend all production of Bitcoins using our S-9 miners.

 

Halving – The bitcoin blockchain and the cryptocurrency reward for solving a block is subject to periodic incremental halving. Halving is a process designed to control the overall supply and reduce the risk of inflation in cryptocurrencies using a Proof-of-Work consensus algorithm. At a predetermined block, the mining reward is cut in half, hence the term “Halving”. The next halving for bitcoin occurred on May 12, 2020. Many factors influence the price of bitcoin and potential increases or decreases in prices in advance of or following a future halving is unknown.

 

Subsequent to March 31, 2020 and through May 13, 2020, in connection with the HC Wainwright Agreement, the Company received gross proceeds of approximately $5,112,366 from the sale of 9,004,108 shares of common stock with an average per share sale price of $ 0.5689.

 

On May 5, 2020, the Compensation Committee of the Board of Directors held a meeting and approved bonuses and stock option grants for Directors and Officers for their contributions to the growth of Marathon Patent Group, Inc., for the year ended December 31, 2019. Total awards to be granted amounted to 1,164,000 restricted stock units at a price of $0.43 per unit with a term of one year, vesting quarterly in equal amounts, and (ii) cash award of $105,000 to Merrick Okamoto and $54,000 to David Lieberman. In addition the Compensation Committee agreed to cancel 1,537,500 existing stock options for Directors, Officers and outside legal counsel, and replace them with new restricted stock units at a price of $0.43 per unit with a term of one year, vesting quarterly in equal amounts.