Here’s a tighter, more polished rewrite:
The former bitcoin mining firm has denied any wrongdoing tied to its 2023 merger with U.S. Bitcoin Corp.
Hut 8 (HUT) has agreed to pay $2.35 million to resolve a securities class action accusing it of misleading investors in connection with its all-stock merger with U.S. Bitcoin Corp. (USBTC) in November 2023.
Filed in the U.S. District Court for the Southern District of New York, the lawsuit centered on claims that Hut 8 overstated the benefits of the transaction and failed to disclose operational issues at King Mountain, a Texas bitcoin mining joint venture in which USBTC held a 50% stake. Those issues reportedly included energy curtailments and unstable internet connectivity.
The case gained momentum after a January 2024 report by short seller J Capital Research, which triggered a 23% drop in Hut 8’s share price.
Court filings show the $2.35 million settlement represents roughly 19.6% of estimated maximum recoverable damages, above typical median and average recovery rates for similar securities cases in 2025.
Hut 8 continues to deny liability as part of the settlement. The company’s shares have surged more than 640% over the past year.
