Hut 8 settles merger suit for $2.35M, insists the check cleared without any admission of guilt

Hut 8 has agreed to pay $2.35 million to resolve a securities class action filed by investors who accused the former bitcoin miner of misrepresenting the state of a key Texas mining joint venture acquired through its 2023 merger with U.S. Bitcoin Corp. The settlement, filed in the U.S. District Court for the Southern District of New York, requires court approval and ends the litigation without any admission of wrongdoing or liability from Hut 8.

The lawsuit centered on Hut 8's all-stock combination with U.S. Bitcoin Corp. (USBTC), which closed in November 2023 and left the combined company focused on bitcoin mining before its later pivot to AI data centers and high-performance computing. Investors alleged that Hut 8 overstated the merger's benefits while failing to disclose ongoing energy curtailment and internet connectivity problems at King Mountain, a Texas bitcoin mining joint venture in which USBTC held a 50% interest.

The case drew added attention after short seller J Capital Research published a critical report on the company in January 2024, after which Hut 8's share price slid more than 23%. According to a court filing, the $2.35 million recovery represents roughly 19.6% of the estimated maximum recoverable damages, above the 12.9% median and 14.6% average recovery rates for Securities Act-only settlements recorded in 2025.

Hut 8 (HUT) shares have gained more than 640% over the past year despite the lingering litigation. The settlement agreement preserves the company's right to deny any fault, even as it closes a chapter that began with the November 2023 merger and sharpened after the early 2024 short-seller report.