Hut 8 Agrees to $2.35M Settlement Over Investor Lawsuit Tied to U.S. Bitcoin Merger

Here’s a clean paraphrase in a professional news style:

The former bitcoin mining firm has denied any wrongdoing related to its 2023 merger with U.S. Bitcoin Corp.

Hut 8 (HUT) has agreed to pay $2.35 million to settle a securities class action alleging it misled investors in connection with its all-stock merger with U.S. Bitcoin Corp. (USBTC) in 2023.

The case, filed in the U.S. District Court for the Southern District of New York, centered on the November 2023 deal that combined the two companies.

Investors claimed Hut 8, which has since shifted its focus toward AI data centers and high-performance computing, overstated the benefits of the transaction and failed to disclose ongoing issues at King Mountain, a Texas-based bitcoin mining joint venture in which USBTC held a 50% stake. These issues reportedly included energy curtailments and unreliable internet connectivity.

The dispute intensified following a critical report by short seller J Capital Research in January 2024, which triggered a drop of more than 23% in Hut 8’s share price.

Court filings indicate the $2.35 million settlement represents about 19.6% of the estimated maximum recoverable damages, above the typical median and average recovery rates for similar securities settlements in 2025.

As part of the agreement, Hut 8 continues to deny any liability or wrongdoing. The company’s shares have surged more than 640% over the past year.