If you purchased shares of Stronghold Digital Mining, Inc. (SDIG), contact Silver Law Group at (800) 975-4345 or at ssilver@silverlaw.com. The deadline to apply to be lead plaintiff is June 13, 2022.
Stronghold Digital Mining is a New York-based Bitcoin mining company that also “operates coal refuse power generation facilities”.
Initial Public Offering (IPO)
Stronghold Digital Mining held its IPO in October, 2021 with the offering of over 7 million shares of common stock at $19 per share. Net proceeds from the offering were $132 million. B. Reiley Securities and Cowen were the book-running managers, with Tudor, Pickering, Holt & Co. as lead manager and D.A. Davidson & Co, Compass Point, and Northland Capital Markets as co-managers for the offering.
Financial Results Cause Stock Crash
On March 29, 2022 Stronghold announced 2021 full year and fourth quarter financial results, which showed a net loss of $0.52 per share for the quarter. Analysts had estimated a net loss of $0.04 per share for the quarter.
Stronghold’s CEO noted “significant headwinds in our operations which have materially impacted recent financial performance.” The news caused Stronghold’s stock price to fall 32% to $6.97 per share on March, 30, 2022. As of this writing, the company’s stock trades at around $4 per share.
It has been alleged that Stronghold’s IPO registration statement was materially false and misleading. The company is alleged to have omitted that contract suppliers were likely to miss anticipated delivery deadlines and quantities causing risk that Stonghold could not expand its mining capacity as requested, among other allegations.
In April, 2022, a class action lawsuit was filed that charges Stronghold and certain of its executives and officers and its IPO underwriters with violations of the Securities Act of 1933.
Recover Stronghold Digital Mining, Inc. (SDIG) Investment Losses
Silver Law Group is a nationally-recognized law firm representing victims of securities and investment fraud. We represent investors in class action lawsuits against issuers in federal and state court as well as investors in securities arbitration claims against brokerage firms for stockbroker misconduct.
Scott Silver, Silver Law Group’s managing partner, is the chairman of the Securities and Financial Fraud Group of the American Association of Justice. Contact us for a no-cost consultation at ssilver@silverlaw.com or call (800) 975-4345.