Hut 8 to settle investor lawsuit over merger for $2.35M

Nasdaq-listed Bitcoin mining company Hut 8 (HUT) has agreed to a $2.35 million settlement in a class-action lawsuit alleging it provided misleading information to investors during its 2023 merger with U.S. Bitcoin Corp (USBTC). The investors claimed that Hut 8 exaggerated the benefits of the merger and failed to fully disclose issues, including power problems, at the King Mountain mining facility in Texas, in which USBTC held a 50% stake. While Hut 8 agreed to the settlement, it did not admit to any wrongdoing or liability for investor losses.