Former Bitcoin miner Hut8 (HUT) has agreed to pay $2.35 million in settlement of a securities class action lawsuit alleging it misled investors in connection with its 2023 merger with U.S. Bitcoin Corporation (USBTC).
The lawsuit, filed in the U.S. District Court for the Southern District of New York, focused on Hut8’s all-stock merger with USBTC, which was completed in November 2023.
Investors alleged that the company, which currently focuses on AI data centers and high-performance computing, overstated the benefits of the deal by failing to disclose sustained energy reductions and internet connectivity issues at King Mountain, a Bitcoin mining joint venture in Texas where USBTC held a 50% interest.
The lawsuit gained momentum after short seller J Capital Research published a critical report in January 2024, and Hut8’s stock price fell more than 23%.
The $2.35 million recovery represents approximately 19.6% of the estimated maximum recoverable damages and exceeds the median recovery rate of 12.9% and average recovery rate of 14.6% for 2025 Securities Act-only settlements, according to court filings.
As part of the agreement, Hut8 denies any wrongdoing or liability. Hut 8 stock has increased over 640% over the past year.
