Hut 8 Investors Reach $2.35M Settlement Over Bitcoin Merger Claims, Filed Monday

According to The Energy Mag, Hut 8 investors reached a $2.35 million settlement over alleged disclosure failures related to the company's all-stock merger with U.S. Bitcoin Corp. (USBTC), with the proposed agreement filed Monday in U.S. District Court for the Southern District of New York. The settlement covers investors who purchased or acquired Hut 8 securities between February 13, 2023, and January 18, 2024.

The case centered on allegations that Hut 8 overstated merger benefits and failed to adequately disclose energy and internet connectivity problems at King Mountain, a Texas bitcoin mining facility in which USBTC held a 50% stake before the merger closed in November 2023. The settlement still requires preliminary and final approval from U.S. District Judge Victor Marrero. Hut 8 did not admit wrongdoing and has denied violating securities law.