Hochburg Mining is about to complain about the refusal to earn

Hochburg Mining is about to complain about the refusal to earn

A class action against Stronghold Digital Mining brides himself after the company has registered results for the fourth quarter that remained behind the expectations.

The company that converts coal waste into energy to reduce Bitcoin went to the stock exchange in October. As part of his IPO (IPO), Stronghold sold 7,690,400 class A parent shares at a price of $ 19 per share and achieved a net proceeds of around $ 132.5 million.

According to a SEC, Stronghold should use the revenues from the IPO for general purposes, including the acquisition of miners and electricity -generating assets to reduce more Bitcoin Submission .

But the registration declaration of the IPO was "much wrong and misleading" according to a statement by the Robbins Geller Rudman & Dowd LLP law firm.

The law firm claims that the declaration did not mention that contractually agreed suppliers would probably miss the expected delivery quantities and periods and that Stronghold would have difficulty finding miners outside of confirmed orders.

If such information were included, they might have drawn attention to the “considerable risk” that Stronghold would not expand its mining capacity as expected and probably suffer losses, the company argued in the explanation.

A Stronghold spokesman did not immediately answer the request from Blockworks for comment.

Stronghold's adjusted profit per share for the fourth quarter of 2021 showed a loss of $ 0.52 per share, the company reported in the past month. It recorded a net loss of $ 17.5 million in the fourth quarter.

CEO Gregory Beard said during the last profit announcement of the company that the results are "not representative of the potential we want to achieve".

The executives of Stronghold attributed the losses to delivery delays and found that despite a delivery period, they received around 3,300 of the 15,000 miners that were ordered by the Minerva Semiconductor Corp, which was based in Canada.

According to Robbins Geller Rudman & Dowd, the share price fell by about 32 %.

Anyone who bought the shares of Stronghold in connection with the IPO can try to become the main plaintiff who will act in the name of all other members of the plague group. Applications from the main plaintiff must be submitted to the court by June 13.

The class action against Stronghold, which began on Thursday, is burdening the company and some of its top managers as well as the consortial banks of the IPO.

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The MINING FAYES LAWSUIT Over Earnings Miss is not a financial advice.