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UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
D.C. 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d)
of
the Securities Exchange Act of 1934
Date
of Report (Date of earliest event reported): January 31, 2024
MARATHON
DIGITAL HOLDINGS, INC.
(Exact
name of Registrant as Specified in Its Charter)
Nevada |
|
001-36555 |
|
01-0949984 |
(State
or Other Jurisdiction
of
Incorporation) |
|
(Commission
File
Number) |
|
(IRS
Employer
Identification
No.) |
101
NE Third Avenue, Suite 1200
Fort
Lauderdale, FL 33301
(Address
of principal executive offices and zip code)
(800)
804-1690
(Registrant’s
telephone number, including area code)
Not
Applicable
(Former
Name or Former Address, if Changed Since Last Report)
Check
the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under
any of the following provisions:
|
☐ |
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|
|
|
|
☐ |
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
|
|
|
|
☐ |
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
|
|
|
|
☐ |
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities
registered pursuant to Section 12(b) of the Act:
Title
of each class |
|
Trading
Symbol(s) |
|
Name
of each exchange
on
which registered
|
Common
Stock |
|
MARA |
|
The
Nasdaq Capital Market |
Indicate
by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405
of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging
growth company ☐
If
an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying
with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 5.02. |
Departure of Directors or Certain Officers;
Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers. |
Compensatory
Arrangements of Certain Executive Officers
On
January 31, 2024, the Compensation Committee (the “Committee”) of the Board of Directors of Marathon Digital Holdings, Inc.
(the “Company”) approved the following compensatory updates and awards for certain members of the Company’s senior
management team, including Fred Thiel, Chief Executive Officer and Chairman, Salman Khan, Chief Financial Officer, James Crawford, Chief
Operating Officer, Ashu Swami, Chief Technology Officer, Adam Swick, Chief Growth Officer, and John Lee, Chief Accounting Officer:
| ● | FY
2023 Annual LTIP Grants; |
| ● | FY
2023 Annual Performance Bonuses; |
| ● | FY
2024 Annual Base Salaries; and |
| ● | FY
2024 Annual Performance Bonus Targets. |
The
FY 2023 Annual LTIP Grants were granted pursuant to the Company’s Long Term Incentive Program (“LTIP”) established
under the 2018 Equity Incentive Plan (the “Plan”). LTIP grants are tied to the performance of the Company when comparing
the Company’s total shareholder returns to those of its peer group, which consists of other publicly traded Bitcoin mining companies
or publicly traded companies involved in the Bitcoin ecosystem.
The
Company previously signaled that there would be a maximum target award when the Company’s performance is at the 85% percentile
and above as compared to its peer group as disclosed in the Company’s Quarterly Report on Form 8-K, filed with the Securities and
Exchange Commission on October 2, 2023. However, following its annual review of benchmark data and a review of compensation practices
of certain peer companies of the Company, the Committee approved the FY 2023 LTIP Grants described below, which reflect revised LTIP
targets intended to align total compensation for the Company’s management team with certain of its peer companies.
The
Committee believes the updates and awards described below continue to reward long-term performance and align the Company’s executive
officers’ interests with the Company’s stockholders.
FY
2023 Annual LTIP Grants
The
Committee approved annual LTIP grants as a result of, among other things, the Company’s stock price performance, which was at the
top of the performance range relative to its peer group for the fiscal year ended December 31, 2023 (“FY 2023”). The FY 2023
Annual LTIP Grants consist of restricted stock units (“RSUs”) for each named executive officer in the amount set forth opposite
such officer’s name in the table below:
Name | |
FY
2023 Annual Base Salary | | |
FY
2023 Annual LTIP Grant Amount (1)(2) | |
Fred Thiel | |
$ | 800,000 | | |
$ | 22,400,000 | |
Salman Khan | |
$ | 475,000 | (3) | |
$ | 13,300,000 | |
James Crawford | |
$ | 309,000 | | |
$ | 4,017,000 | |
Adam Swick | |
$ | 300,000 | | |
$ | 3,900,000 | |
Ashu Swami | |
$ | 285,312 | | |
$ | 5,209,063 | |
John Lee | |
$ | 303,750 | | |
$ | 3,341,250 | |
(1)
The number of RSUs shall equal the grant amount divided by the moving average closing price of the Company’s common stock for the
100 consecutive trading days prior to and including the grant date.
(2)
The FY 2023 Annual LTIP Grants shall vest over a three-year period, with 25% of the RSUs vesting immediately, and the remaining portion
vesting in twelve quarterly installments of 6.25% thereafter, subject to the named executive officer’s continued service to the
Company through each vesting date.
(3)
Mr. Salman commenced employment in June 2023, so his pro rata base salary for the fiscal year was $241,099.
FY
2023 Annual Performance
The
Committee approved the payment of annual performance bonuses based on the achievement of certain performance objectives and targets for
FY 2023 for each named executive officer in the amount set forth opposite such officer’s name in the table below:
Name | |
FY
2023 Annual Performance Bonus | |
Fred Thiel | |
$ | 1,800,000 | |
Salman Khan | |
$ | 623,438 | |
James Crawford | |
$ | 463,500 | |
Adam Swick | |
$ | 450,000 | |
Ashu Swami | |
$ | 427,969 | |
John Lee | |
$ | 379,688 | |
FY
2024 Annual Base Salaries for Named Executive Officers
The
Committee approved annual base salary increases for the named executive officers for the fiscal year ending December 31, 2024 (“FY
2024”), which are retroactive to January 1, 2024. The annual base salary received for FY 2023 and to be received for FY 2024 by
each named executive officer are set forth opposite such officer’s name in the table below:
Name | |
FY
2024 Annual Base Salary | |
Fred Thiel | |
$ | 950,000 | |
Salman Khan | |
$ | 625,000 | |
James Crawford | |
$ | 350,000 | |
Adam Swick | |
$ | 350,000 | |
Ashu Swami | |
$ | 350,000 | |
John Lee | |
$ | 325,000 | |
FY
2024 Annual Bonus Targets
Following
its annual review of benchmark data provided by the Company’s independent compensation consultant, the Committee approved annual
bonus targets for FY 2024 for each named executive officer as set forth opposite such officer’s name in the table below:
Name | |
FY
2024 Annual Base Salary | | |
FY
2024 Annual Bonus Target Percentage | |
FY
2024 Annual Bonus Target Amount | |
Fred Thiel | |
$ | 950,000 | | |
up to
225% | |
$ | 2,137,500 | |
Salman Khan | |
$ | 625,000 | | |
up to 225% | |
$ | 1,406,250 | |
James Crawford | |
$ | 350,000 | | |
up to 150% | |
$ | 525,000 | |
Adam Swick | |
$ | 350,000 | | |
up to 150% | |
$ | 525,000 | |
Ashu Swami | |
$ | 350,000 | | |
up to 150% | |
$ | 525,000 | |
John Lee | |
$ | 325,000 | | |
up to 125% | |
$ | 406,250 | |
The
annual bonuses shall be determined based on the achievement of certain performance objectives and targets for FY 2024 to be established
by the Committee.
Compensatory
Arrangement for the Board of Directors
FY
2023 Annual RSU Grants
The
Committee approved annual RSU grants for FY 2023 for each member of the board of directors as set forth opposite such director’s
name in the table below:
Name | |
FY
2022 Annual RSU Grant(1)(2) | |
Fred Thiel | |
$ | 850,000 | |
Doug Mellinger | |
$ | 850,000 | |
Said Ouissal | |
$ | 850,000 | |
Sarita James | |
$ | 850,000 | |
Georges Antoun | |
$ | 850,000 | |
Kevin DeNuccio | |
$ | 850,000 | |
Jay Leupp | |
$ | 850,000 | |
| (1) | The
number of RSUs shall equal the grant amount divided by the moving average closing price of
the Company’s common stock for the 100 consecutive trading days prior to and including
the grant date. |
| | |
| (2) | The
RSUs shall vest in full immediately. |
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
|
MARATHON
DIGITAL HOLDINGS, INC. |
|
|
|
Date:
February 2, 2024 |
By: |
/s/
Zabi Nowaid |
|
Name: |
Zabi
Nowaid |
|
Title: |
General
Counsel |
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