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Bitcoin

A lawsuit filed by the Allegheny County Employees’ Retirement System is seeking class action status against Stronghold Digital Mining Inc., alleging that the company made misleading statements during its initial public offering (IPO) in October 2021. Represented by Rosen Law, the plaintiffs claim that Stronghold’s offering materials contained false information regarding the delivery schedules and performance capabilities of Bitcoin mining machines ordered from MinerVa Semiconductor Corp, according to <a href="https://blocktribune.com/lawsuit-seeks-class-status-over-alleged-misleading-statements-in-stronghold-crypto-miner-ipo/" rel="noopener noreferrer nofollow">Blocktribune</a>.
The lawsuit alleges that Stronghold misrepresented MinerVa’s ability to meet stringent delivery deadlines, including a promise of the first delivery of miners less than two weeks post-IPO. However, power outages at MinerVa’s assembly facility had already caused delays in delivery, contradicting the company's claims.
Furthermore, the complaint accuses Stronghold of overstating the computing power, or "hash rate," of the MinerVa miners, alongside the company’s capacity to achieve a total hash rate of 2,100 petahash per second across its operations by the end of 2021. As a result of these delivery delays and the underperformance of the received mining machines, Stronghold only managed to reach approximately 800 petahash per second by December 31, 2021.
The motion for class certification argues that the proposed class meets all the criteria set by Federal Rule of Civil Procedure 23, including numerosity, commonality, typicality, and the adequacy of representation. Rosen Law contends that it is well-qualified to act as class counsel, aiming to represent all investors who bought Stronghold stock linked to its October 2021 IPO and subsequently incurred financial losses.
Since its IPO, priced at $19, Stronghold’s stock has plummeted by over 80%, further exacerbated by the company’s March 2022 financial disclosures, which highlighted the significant delivery delays and impairment charges related to the MinerVa miners.
The outcome of this class action lawsuit could have significant implications for Stronghold Digital Mining and its investors, potentially setting a precedent for transparency and accountability in the cryptocurrency mining industry’s public offerings.

Stronghold Digital Mining Faces Class Action Lawsuit Over IPO Misrepresentations

Ultramining_Eng

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