Former bitcoin miner Hut 8 (HUT) agreed to pay $2.35 million to settle a securities class motion alleging it misled traders in reference to its 2023 merger with U.S. Bitcoin Corp. (USBTC).
The lawsuit, filed within the U.S. District Court docket for the Southern District of New York, centered on Hut 8’s all-stock merger with USBTC, which closed in November 2023.
Buyers alleged the corporate, which now focuses on AI knowledge facilities and high-performance computing, overstated the transaction’s advantages whereas failing to reveal persistent power curtailment and web connectivity points at King Mountain, a Texas bitcoin mining three way partnership wherein USBTC held a 50% curiosity.
The litigation gained momentum after quick vendor J Capital Analysis revealed a vital report in January 2024, prompting a slide of greater than 23% in Hut 8’s share worth.
In accordance with a courtroom submitting, the $2.35 million restoration represents roughly 19.6% of the estimated most recoverable damages, exceeding the 12.9% median and 14.6% common restoration charges for Securities Act-only settlements in 2025.
As a part of the settlement, Hut 8 denies any wrongdoing or legal responsibility. Hut 8 shares have gained greater than 640% over the previous yr.
