Form 4: Stronghold Digital Mining Director Acquires Shares as Part of Annual Retainer

Director Thomas Pacchia acquired 5,176 shares of Stronghold Digital Mining Class A common stock as part of his annual retainer.

Summary

• Thomas Pacchia, a director at Stronghold Digital Mining, acquired 5,176 shares of Class A common stock on January 10, 2025.
• The shares were acquired at a price of $4.83 per share.
• This transaction increased Pacchia's direct holdings to 67,226 shares.
• The acquisition was part of the company's Non-Employee Director Compensation Policy, where directors receive fully vested shares as an annual retainer.
• The shares represent the portion of the annual retainer covering the fourth quarter of fiscal year 2024.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction related to director compensation, which is generally viewed positively as it aligns director interests with shareholders. There are no negative implications.

Positives

• The acquisition of shares by a director demonstrates alignment of interests between management and shareholders.
• The use of stock as part of director compensation can help conserve cash for the company.

Management Comments

• Non-employee directors receive fully vested shares of Issuer's Class A common stock as an annual retainer for their service on the Issuer's board, unless they elect otherwise, consistent with their Stock ownership obligations.

Industry Context

The practice of compensating directors with company stock is common in many industries, particularly in technology and growth-oriented sectors, to align their interests with those of shareholders.

Comparison to Industry Standards

• Many companies, such as Riot Platforms and Marathon Digital, also use stock-based compensation for directors.
• The amount of stock granted is generally based on the company's size, performance, and industry standards.
• The value of the shares granted to Thomas Pacchia is consistent with the company's director compensation policy.

Stakeholder Impact

• The stock acquisition by a director can be viewed positively by shareholders as it aligns interests.
• The use of stock for compensation can help the company conserve cash.

Key Dates

Keywords

Stronghold Digital Mining, Director Compensation, Stock Acquisition, Class A Common Stock, SEC Form 4, Thomas Pacchia, Director Holdings