Former Bitcoin miner Hut 8 (HUT) has agreed to pay $2.35 million to settle a securities class action lawsuit alleging it misled investors in connection with its 2023 merger with US Bitcoin Corp.
The lawsuit, filed in the U.S. District Court for the Southern District of New York, focused on the merger of all shares of Hut 8 with USBTC, which closed in November 2023.
Investors alleged that the company, which now focuses on AI data centers and high-performance computing, overstated the benefits of the deal while failing to disclose ongoing energy curtailment and internet connectivity issues at King Mountain, a Texas bitcoin mining joint venture in which USBTC held a 50% stake.
The dispute gained momentum after short seller J Capital Research issued a critical report in January 2024, causing Hut 8’s share price to drop more than 23%.
According to a court filing, the $2.35 million recovery represents approximately 19.6% of the estimated maximum amount of recoverable damages, exceeding the median recovery rates of 12.9% and 14.6% average for Securities Act-only settlements in 2025.
As part of the agreement, Hut 8 denies any wrongdoing or liability. Hut 8 shares have gained more than 640% over the past year.
