The Bitcoin network's processing power could rebound if miners relocate to other locales, one analyst predicts.
The order is to be completed by the end of the month.
The shares are scheduled to make their debut on Nasdaq next week.
Union opposition helped kill a Senate-passed environmental bill in the New York Assembly to regulate crypto mining.
A report by Forkast News appears to have been incorrect, a number of mining sources tell CoinDesk.
The coming ban follows similar actions in Qinghai, Xinjiang and Inner Mongolia.
President Nayib Bukele is moving on multiple fronts to make El Salvador an unlikely bitcoin mecca.
Luxor says it will work with NYDIG on "a number of mining-related ventures and hashrate-based products."
It follows other provinces, including Xinjiang and Inner Mongolia, in ordering miners to shut down.
The local government of Changji in Xinjiang has instructed miners at the Zhundong Economic Technological Development Park to shut down mining activities.
The announcement comes as the environmental impact of mining for the world's largest cryptocurrency has come under intense scrutiny.
Based on the current price of Sphere's shares, the merger is valued at $184.3 million.
"Marathon is committed to the core tenets of the Bitcoin community, including decentralization, inclusion, and no censorship," said the CEO.