Stronghold Digital Mining, Inc.

Investigation
03/30/2022

Initial Lawsuit
04/14/2022

Lawsuit Progression
06/13/2022

Investigation

Public Offering Date
October 21, 2021
Proposed Claim
Securities Violation

Investors investigation into Stronghold’s initial public offering (IPO) statement about miners demand, pre-sold supply of mining equipment in the industry, difficulties to obtain miners and expand mining capacity.

Main Event

2021 Results

03/29/2022

SEC Filing

Stronghold announces its financial results for the fiscal year 2021. Regarding the delivery of the 15,000 MV7 ASIC SHA256 miners, Stronghold disclosed it had “only received approximately 3,300 of the total 15,000 miners ordered from MinerVa, despite an initial delivery deadline of December 31, 2021.”

“This delivery deadline was later revised to April 30, 2022 based on communications with MinerVa. Stronghold continues to have active dialogue with MinerVa regarding its delivery schedule and operational capabilities, but the Company does not have sufficient information from MinerVa to provide an update or a timeline on future deliveries, or if the Company can expect any future deliveries.“

The stock impact compares the closing price immediately preceding the date of the event and the following closing price. The price difference also reflects the overall mix of information.

Stock Impact

Close	Previous close	Price variation	Percentage variation
$6.97	$10.25	$-3.28	-32%

See more on Factual Timeline

Initial Lawsuit

First Complaint - 04/14/2022

This is a class action on behalf of persons and entities that purchased or otherwise acquired Stronghold Class A common stock pursuant and/or traceable to the registration statement and prospectus issued in connection with the company’s October 2021 initial public offering (IPO).

Filing Date
04/14/2022
Public Offering Date
10/21/2021
Transgression
Securities Violation
Filing Firms
Glancy Prongay & Murray LLP
Law Offices of Howard G. Smith
Case Title
Winter v. Stronghold Digital Mining, Inc. et al
Docket Number
1:22-cv-03088
Court
New York Southern District Court
Free File
Complaint

Allegations

According to the complaint, defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations, and prospects. Specifically, defendants allegedly failed to disclose to investors:

(1) that contracted suppliers, including MinerVa, were reasonably likely to miss anticipated delivery quantities and deadlines;
(2) 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;
(3) that, as a result of the foregoing, there was a significant risk that Stronghold could not expand its mining capacity as expected;
(4) that, as a result, Stronghold would likely experience significant losses; and
(5) that, as a result of the foregoing, defendants’ positive statements about the company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.