Gregory A. Beard, the Chief Executive Officer of Stronghold Digital Mining, Inc. (NASDAQ:SDIG), a small-cap digital mining company with a market capitalization of $69.5 million, recently engaged in a series of stock transactions involving the company's Class A common stock. According to InvestingPro analysis, the stock currently appears undervalued and shows high volatility with a beta of 2.94. On December 23, 2024, Beard acquired 119,047 shares at a price of $5.04 per share, totaling approximately $599,996.
In subsequent transactions, Beard sold a total of 63,951 shares. On December 24, 2024, he sold 49,750 shares at a price of $4.0096 per share, and on December 23, 2024, he sold an additional 14,201 shares at $3.85 per share. The combined sales amounted to approximately $254,151.
These transactions were conducted as part of Beard's compensation arrangement with Stronghold Digital Mining, where he receives a portion of his annual salary in equity. The sales were made to cover taxes related to this equity compensation. Following these transactions, Beard holds 446,533 shares directly.
In other recent news, Stronghold Digital Mining Inc. has revised its Q3 2024 financial results following a review by the Securities and Exchange Commission (SEC). The restatement was necessary due to an error in revenue recognition from Bitcoin miner hosting contracts, leading to a misclassification of $3,145,003 in cryptocurrency hosting revenues. However, the correction does not impact the company's net loss for the 2024 quarterly periods. The company also identified a material weakness in its internal control over financial reporting and has outlined steps for remediation in the amended filing.
In addition, B. Riley Financial has revised its stock price targets for several digital mining companies, including Stronghold Digital Mining. The Q3 2024 report for Stronghold showed a decrease in Bitcoin production and revenue, with 188 Bitcoin generated and an additional $0.5 million in energy revenue. This resulted in a total Q3 revenue of $11.2 million, down 42% sequentially and 37% year-over-year.
In a move to diversify beyond Bitcoin mining and increase operational efficiency, Stronghold announced a pending merger with Bitfarms. Two new hosting agreements with Bitfarms are expected to improve mining operations at Stronghold's facilities. However, the company reported a GAAP net loss of $22.7 million, with a non-GAAP adjusted EBITDA loss of $5.5 million. These developments highlight the company's recent activities and strategic moves.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.