Hut 8 to pay $2.35 million to settle investor suit over U.S. Bitcoin merger

Markets Hut 8 to pay $2.35 million to settle investor suit over U.S. Bitcoin merger The former bitcoin miner denied any wrongdoing related to its 2023 merger with U.S. Bitcoin Corp. By James Van Straten , AI Boost | Edited by Sheldon Reback Jun 23, 2026, 9:57 a.m. 1 min read Make preferred on Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email Make preferred on (Ralf Kleeman/Shutterstock) Summary Show Hut 8 agreed to pay $2.35 million to settle an investor suit alleging the company failed to disclose operational issues at a key mining venture acquired through its 2023 merger with U.S. Bitcoin Corp. The deal, which requires court approval, ends a securities class action that followed a share price decline after a critical short-seller report in early 2024. Former bitcoin miner Hut 8 (HUT) agreed to pay $2.35 million to settle a securities class action alleging it misled investors in connection with its 2023 merger with U.S. Bitcoin Corp. (USBTC). The lawsuit, filed in the U.S. District Court for the Southern District of New York, focused on Hut 8's all-stock merger with USBTC , which closed in November 2023. Investors alleged the company, which now focuses on AI data centers and high-performance computing, overstated the transaction's benefits while failing to disclose persistent energy curtailment and internet connectivity issues at King Mountain, a Texas bitcoin mining joint venture in which USBTC held a 50% interest. The litigation gained momentum after short seller J Capital Research published a critical report in January 2024, prompting a slide of more than 23% in Hut 8's share price. According to a court filing, the $2.35 million recovery represents roughly 19.6% of the estimated maximum recoverable damages, exceeding the 12.9% median and 14.6% average recovery rates for Securities Act-only settlements in 2025. As part of the agreement, Hut 8 denies any wrongdoing or liability. Hut 8 shares have gained more than 640% over the past year. Bitcoin Mining AI Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards . For more information, see CoinDesk's full AI Policy . Latest Crypto News 1 Bitcoin price has limited downside, likely near bottom, contrarian indicator suggests 1 hour ago 2 Live updates: An 'altcoin season' signal flashed, but bitcoin's slide is what set it off 3 hours ago 3 XRP drifts toward $1.10 support as traders await break from three-week range 3 hours ago 4 SpaceX’s $600 billion plunge erased equivalent of nearly half of bitcoin’s market cap in 3 days 3 hours ago 5 Bitcoin falls under $63,000 as a tech selloff drags risk assets lower 4 hours ago 6 Trump signs orders to build a quantum computer and protect against the one that could break encryption 4 hours ago 7 U.S. Senate passes housing bill that carries four-year ban on a Fed CBDC 10 hours ago 8 Securitize and tZERO clash over patents as race to bring Wall Street onchain heats up 12 hours ago 9 Ric Edelman says crypto’s biggest growth story is happening off the price chart 12 hours ago 10 21Shares co-founder warns tokenization hype is outrunning Wall Street reality 13 hours ago Latest Research CEX Volumes Drop to Lowest Since September 2024 as RWA Perps Hit Record High CEX Volumes Drop to Lowest Since September 2024 as RWA Perps Hit Record High In May, combined exchange volumes fell 3.45% to $4.41T; the lowest since September 2024. RWA perpetual futures volumes rose 10.4% against the trend, hitting a new all-time high. By CoinDesk Research Jun 15, 2026 In May, combined exchange volumes fell 3.45% to $4.41T; the lowest since September 2024. RWA perpetual futures volumes rose 10.4% against the trend, hitting a new all-time high. Why it matters : In May, combined exchange volumes fell 3.45% to $4.41T; the lowest since September 2024. RWA perpetual futures volumes rose 10.4% against the trend, hitting a new all-time high. View Full Report More From Markets Bitcoin price has limited downside, likely near bottom, contrarian indicator suggests Live updates: An 'altcoin season' signal flashed, but bitcoin's slide is what set it off XRP drifts toward $1.10 support as traders await break from three-week range