Former bitcoin miner Hut 8 (HUT) has agreed to pay $2.35 million to settle a securities class motion lawsuit alleging it misled traders in reference to its 2023 merger with US 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.
Traders alleged that the corporate, which now focuses on high-performance computing and synthetic intelligence knowledge facilities, exaggerated the advantages of the transaction and didn’t disclose persistent energy constraints and web connectivity points at King Mountain, a Texas bitcoin mining three way partnership wherein USBTC had a 50% stake.
The litigation gained momentum after quick vendor J Capital Analysis revealed a crucial report in January 2024, inflicting Hut 8’s share value to drop greater than 23%.
Based on a courtroom submitting, the $2.35 million restoration represents roughly 19.6% of the estimated most recoverable damages, exceeding the 12.9% common and 14.6% common restoration charges for settlements based mostly solely on the Securities Act 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 12 months.
