Shareholder rights law firm Robbins LLP is investigating Stronghold Digital Mining, Inc.'s (NASDAQ: SDIG) and its officers and directors to determine whether they breached their fiduciary duties and violated securities laws in connection with the Company's October 2021 initial public offering ("IPO"). Stronghold is a crypto asset mining company focused on mining Bitcoin. It owns and operates two low-cost, environmentally beneficial coal refuse power generation facilities in Pennsylvania.
If you would like more information about our investigation into Stronghold Digital Mining, Inc.'s misconduct, click here.
What is this Case About: According to a complaint filed against Stronghold, the Registration Statement filed in support of its IPO was misleading. Specifically, the Company failed to state that contracted suppliers were reasonably likely to miss anticipated delivery quantities and deadlines, and that, due to strong demand and pre-sold supply of mining equipment in the industry, Stronghold would experience difficulties obtaining miners outside of confirmed purchase orders. Consequently, there would be a significant risk that Stronghold could not expand its mining capacity as expected and would experience significant losses.
On March 29, 2022, Stronghold announced its fourth quarter and full year 2021 financial results. The Company reported a net loss of $0.52 for the quarter, below analyst estimates of $0.04 earnings per share, and Stronghold’s Chief Executive Officer cited “significant headwinds in our operations which have materially impacted recent financial performance.” On this news, the Company’s stock price fell as much as $3.28, or 32%, to close at $6.97 per share on March 30, 2022. By the commencement of the class action, Stronghold stock has traded as low as $4.78 per share, a more than 75% decline from the $19 per share IPO price.
Next Steps: If you acquired shares of Stronghold Digital Mining, Inc. (SDIG) pursuant to the Company's October 2021 IPO, you have legal options. Contact us for more information.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
Contact us to learn more:
Aaron Dumas
(800) 350-6003
adumas@robbinsllp.com
Shareholder Information Form
About Robbins LLP: A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. To be notified if a class action against Stronghold Digital Mining, Inc. settles or to receive free alerts when corporate executives engage in wrongdoing, sign up for Stock Watch today.
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