Stronghold Digital to Pay $4.75 Million and 25 BTC to Settle Lawsuit

Stronghold Digital Mining has agreed to pay $4.75 million in cash and 25 Bitcoins to settle a class-action lawsuit alleging it overstated its mining capacity during its 2021 IPO. The 25 BTC are valued at approximately $2.2 million based on the current price of $90,000 per BTC.

The lawsuit was filed in April 2022 after delays and underperformance issues emerged with equipment from MinerVA Semiconductor Corp., which Stronghold relied on to boost its mining capabilities. The company received only 3,300 of the 15,000 miners ordered, with performance at just 50–70% of expected capacity.

The settlement agreement comes after a year of mediation and aims to compensate investors affected by Stronghold’s stock declining 75% since its IPO. The company continues to restructure debts and explore merger opportunities with other mining firms.