Hut 8 Settles Merger-Related Lawsuit for $2.35 Million

Hut 8 Corp., a leading Bitcoin miner, has agreed to pay $2.35 million to settle a proposed securities class action lawsuit brought by investors who accused the company of misleading the market about operational problems tied to its 2023 merger with U.S. Bitcoin Corp.

The settlement resolves claims on behalf of investors who purchased or acquired Hut 8 securities in the U.S. or on a U.S.-based exchange between February 13, 2023, and January 18, 2024. The proposed settlement still requires preliminary and final approval from U.S. District Judge Victor Marrero.

The case centered on Hut 8's all-stock merger with U.S. Bitcoin Corp., which created the current Hut 8 Corp. Investors alleged that Hut 8 overstated the benefits of the transaction and failed to adequately disclose energy and internet connectivity problems at King Mountain, a Texas bitcoin mining joint venture in which U.S. Bitcoin Corp. held a 50% interest before the merger.

Hut 8 did not admit wrongdoing under the proposed settlement and has denied that it violated the law or caused losses to investors. The lawsuit followed a January 2024 short-seller report by J Capital Research that challenged Hut 8's statements about the U.S. Bitcoin Corp. merger and alleged problems at King Mountain.