Hut 8 Agrees to $2.35M Settlement in 2023 Bitcoin Merger Investor Suit

According to a U.S. District Court filing submitted Monday, Hut 8 Corp. has agreed to pay $2.35 million to settle a securities class action brought by investors who alleged the bitcoin miner misled the market about operational problems following its 2023 merger with U.S. Bitcoin Corp.

The settlement covers investors who purchased Hut 8 securities between February 2023 and January 2024. Investors alleged Hut 8 failed to adequately disclose energy and infrastructure issues at King Mountain, a Texas mining facility in which the merger partner held a 50% stake. The lawsuit was triggered by a short-seller report on January 18, 2024, which sparked a 23% decline in Hut 8 shares that day. Hut 8 has not admitted wrongdoing and the settlement still requires court approval from U.S. District Judge Victor Marrero.