Crypto miner Stronghold Digital faces class action over IPO claims ‘materially false and misleading’

Crypto miner Stronghold Digital faces a class-action lawsuit over its initial public offering (IPO) statement “substantially false and misleading,” according to a filing with the U.S. Securities and Exchange Commission (SEC). , the company that converts coal waste into energy to mine bitcoin went public last October. As part of its IPO, Stronghold sold 7,690,400 shares of Class A common stock at $19 per share, for a net gain of approximately $132.5 million. The lawsuit said the statement made no mention of the possibility that contract suppliers could miss the expected number and deadline for delivery of miners, information that should be disclosed to investors as a matter of “significant risk.” The company reported last month that Stronghold’s fourth-quarter 2021 adjusted earnings per share showed a loss of $0.52 per share and a fourth-quarter net loss of $17.5 million.

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