Stronghold Digital Mining, Inc.: auditor change — Stronghold Digital Mining restates Q3 2024 financials after SEC challenge; material weakness identified

Stronghold Digital Mining, Inc.

Restatement due to error in Bitcoin miner hosting revenue recognition; cumulative impact decreases hosting revenue by $3,145,003.
SEC disagreed with company's materiality assessment, prompting non-reliance on originally filed Q3 10-Q.
Offsetting reclassifications: realized gain on sale of digital currencies increased by $3,257,827; unrealized gain decreased by $112,824.
Company identified material weakness in internal control over financial reporting as of September 30, 2024.
Stronghold will file amended 10-Q/A contemporaneously with this 8-K.

item 4.02 item 9.01

Key facts

Extracted from this filing and checked against the source text.

Auditor Changes SEC 8-K Item 4.01/4.02 confidence 0.9

Stronghold Digital Mining, Inc. reported that prior financial statements should not be relied upon.

Action: non reliance

Exact text from the filing

Accordingly, in connection with the SEC’s review, the Company’s management, in consultation with its advisors, reevaluated its materiality assessment for the 2024 quarterly periods and concluded that the Original Form 10-Q should no longer be relied upon due to the cumulative magnitude of the classification error identified.

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Source: SEC EDGAR

accession 0001140361-24-049546

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