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06/23 10:23

Hut 8 to pay $2.35 million to settle investor suit

#World Cup Predictions: 100,000 USDT Daily #HTX Invites You to Share 600K USDT in Gift Packs #BTC Prophet: 20-Day 380 Million HTX Challenge Hut 8 to pay $2.35 million to settle investor suit over U.S. Bitcoin mergerFormer 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. 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. According to a court filing, the $2.35 million recovery represents roughly 19.6% of the estimated maximum recoverable damages, exceeding the 12.9% median and 14.6% average recovery rates for Securities Act-only settlements in 2025. As part of the agreement, Hut 8 denies any wrongdoing or liability. Hut 8 shares have gained more than 640% over the past year. Bitcoin Mining AI Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk's full AI Policy.
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