Hut 8 has agreed to pay $2.35 million to make a securities class-action lawsuit go away. The case alleged the Bitcoin mining company misled investors during its all-stock merger with US Bitcoin Corp. (USBTC), which closed in November 2023.
The proposed settlement, filed in the US District Court for the Southern District of New York, is pending approval from Judge Victor Marrero. Hut 8 denies any wrongdoing.
What the lawsuit actually alleged
The heart of the case was the King Mountain joint-venture mining facility. Plaintiffs claimed Hut 8 failed to disclose operational issues at the site, which came into the company’s portfolio through the USBTC merger.
The merger itself was announced in early February 2023. From that point through January 18, 2024, investors who purchased Hut 8 securities form the class covered by the settlement.
