SDIG.US
id: 1388
Stronghold Digital Mining (SDIG) $4.75M and 25 Bitcoins Settlement
Eligible claimants can submit their claims for compensation.
S.D. New York
Court 1:22-cv-03088
Case number10/19/2021
Class period Start04/14/2022
Class period End04/04/2025
Claim deadlineStronghold Digital Mining ($SDIG) has agreed to settle $4.75M and 25 Bitcoins with investors to resolve claims that it misled them about supplier delays, equipment shortages, and the financial risks of its coal ash-powered mining strategy.
Outline
In 2021, Stronghold Digital Mining was accused of overstating the benefits of its coal ash cleanup strategy during its IPO and hiding regulatory and operational issues. Following this, $SDIG dropped 35%, and Stronghold Digital Mining faced a lawsuit from investors.
Timeline
- October 20, 2021: Stronghold completed its IPO, raising $127M, promoting its coal ash cleanup strategy as both environmentally and financially sustainable.
- March 29, 2022: Reports revealed major operational and regulatory setbacks, including high costs and supplier delays, causing $SDIG to drop 35%.
- April 14, 2022: Investors filed a lawsuit, claiming Stronghold failed to disclose key risks in its IPO filings.
- November 8, 2024: Stronghold agreed to a settlement of $4.75M and 25 Bitcoins to resolve all claims.
Background
In 2021, Stronghold Digital Mining marketed itself as an environmentally friendly Bitcoin mining company, using waste coal ash for power generation.
The company claimed its operations would deliver significant environmental benefits and strong financial returns, projecting robust future earnings.
However, after its IPO in October 2021, Stronghold faced unexpected regulatory issues, supplier delays, and equipment shortages. These challenges significantly increased operational costs and hurt profitability.
In early 2022, reports revealed these issues, leading to a 35% drop in $SDIG.
Shortly after, investors filed a lawsuit claiming that Stronghold failed to disclose these risks in its IPO filings, resulting in significant losses and eroding confidence in its business model.
What Can Investors Expect Now?
Stronghold Digital Mining ($SDIG) has agreed to settle $4.75M and 25 Bitcoins with investors to resolve claims that it misled them about supplier delays, equipment shortages, and the financial risks of its coal ash-powered mining strategy.
If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section below.
Case Status
Accepting Claims
Alleged Offence
Misleading Statements,
Financial Misrepresentation
Suspected Party
Management,
Investment Bank
Security Type
Stocks
Trade Direction
Long
Payout per Share
0.35
Filing date
04/14/2022
Plaintiffs
Mark Winter
Attorneys
The Rosen Law Firm, P.A.; Levi & Korsinsky, LLP
Defendants
Gregory A. Beard; Ricardo R. A. Larroude; William B. Spence
Judge
Ronnie Abrams
Administrator
Strategic Claims Services
Court hearing date
04/11/2025
Exclusion deadline
03/21/2025
Attorney fee
$1,783,175
Class wide damages
$108,896,064
Trades matching type
FIFO
+$4,750,000
Cash Settlement Amount