Hut 8 to pay $2.35 million to settle investor suit over U.S. Bitcoin merger
Key takeaways
- District Court for the Southern District of New York, focused on Hut 8's all-stock merger with USBTC, which closed in November 2023.
- The litigation gained momentum after short seller J Capital Research published a critical report in January 2024, prompting a slide of more than 23% in Hut 8's share price.
- As part of the agreement, Hut 8 denies any wrongdoing or liability.
Bitcoin Corp.The deal, which requires court approval, ends a securities class action that followed a share price decline after a critical short-seller report in early 2024.Former bitcoin miner Hut 8 (HUT) agreed to pay $2.35 million to settle a securities class action alleging it misled investors in connection with its 2023 merger with U.S. Bitcoin Corp. (USBTC).
The lawsuit, filed in the U.S. District Court for the Southern District of New York, focused on Hut 8's all-stock merger with USBTC, which closed in November 2023.
Investors alleged the company, which now focuses on AI data centers and high-performance computing, overstated the transaction's benefits while failing to disclose persistent energy curtailment and internet connectivity issues at King Mountain, a Texas bitcoin mining joint venture in which USBTC held a 50% interest.