Stronghold Digital Mining IPO Class Action Settlement

If you purchased or acquired Stronghold Digital Mining, Inc. Class A common stock on or before December 20, 2021, you may be eligible to claim compensation from a class action settlement.

Stronghold Digital Mining, Inc. has agreed to pay $4,750,000 to settle a class action lawsuit for alleged violations related to their initial public offering (IPO) in October 2021.

This settlement includes a cash payment and a distribution of 25 Bitcoins to eligible class members.

Who Can File a Claim?

To be considered a class member eligible for compensation, you must meet the following criteria:

• Purchased or otherwise acquired Stronghold Class A common stock on or before December 20, 2021.
• Acquired shares pursuant and/or traceable to the Offering Documents issued in connection with the IPO.
• Experienced damages as a result of these transactions.

How Much Can Class Members Get?

The settlement provides a fund of $4,750,000 in cash and 25 Bitcoins, which will be distributed to eligible class members. The average recovery is estimated to be approximately $0.85 per share before deductions for fees and expenses.

The actual recovery will depend on several factors, including the number of claims submitted and the timing of your transactions. The distribution will be based on a pro rata calculation, meaning your share of the settlement will be proportional to your recognized loss compared to the total recognized losses of all claimants.

• Cash Portion: $4,750,000
• Bitcoin Portion: 25 Bitcoins, paid over 24 months

If the award amount is subject to a net settlement fund calculation, the average recovery after deductions for attorneys' fees and expenses is estimated to be approximately $0.53 per allegedly damaged share.

How to Submit a Claim

Class members must submit a claim form. They can file a claim online or download a PDF version of the claim form.

Completed forms should be submitted online or mailed to Stronghold Securities Settlement, c/o Strategic Claims Services, P.O. Box 230, 600 N. Jackson Street, Suite 205, Media, PA 19063.

Claimants need to provide proof of their transactions in Stronghold Class A common stock. This includes documentation such as broker confirmations or other records that verify your purchases, sales, and holdings during the period.

Claim Instructions

Follow these steps to submit your claim:

1. Gather all relevant transaction documentation.
2. Complete the claim form with accurate information.
3. Submit the form online or mail it to the provided address.
4. Ensure all submissions are made by the deadline of April 4, 2025.

Payment Methods

Class members will receive their payments through the following methods:

• Direct deposit to a bank account
• Check mailed to the address provided on the claim form

Settlement Fund Breakdown

The settlement fund of $4,750,000 plus 25 Bitcoins will cover the following:

• Cash payments to eligible class members
• Attorneys’ fees up to $1,583,333 plus one third of the value of 25 BTC
• Litigation expenses not exceeding $250,000
• An award to the lead plaintiff not to exceed $10,000

Important Dates

• Fairness Hearing: April 11, 2025
• Deadline to File a Claim: April 4, 2025

When is the Stronghold Payout Date?

The payout date will occur after the final approval of the settlement, following the Fairness Hearing on April 11, 2025, and resolution of any appeals.

Why is There a Class Action Settlement?

The lawsuit alleged that Stronghold Digital Mining, Inc. made false and misleading statements in their IPO documents, violating the Securities Act. The settlement avoids the costs and risks of continuing litigation and provides compensation to affected investors.