Hut 8 agreed to pay $2.35 million to settle a class action lawsuit filed in the Southern District of New York, related to its merger with U.S. Bitcoin Corp, completed in 2023.
Investors alleged that the company overstated the benefits of the transaction and failed to disclose operational issues at King Mountain, a bitcoin mining joint venture in Texas where USBTC held a 50% stake. Among the reported failures were persistent power outages and internet connectivity problems that affected the site’s operations.
The litigation gained momentum in January 2024, when J Capital Research published a critical report on the company, which led to a drop of more than 23% in the share price of Hut 8. According to court documents, the $2.35 million recovered represents approximately 19.6% of estimated maximum damages, surpassing the median of 12.9% and the average of 14.6% recorded in similar Securities Act settlements during 2025.
As part of the agreement, the company, which currently focuses on artificial intelligence data centers and high-performance computing, denied any liability or wrongdoing. Hut 8 shares have gained 640% over the past year.
Source:Â https://backend.theenergymag.com/wp-content/uploads/2026/06/Hut-8-settlement.pdf
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