Hut 8 agrees to pay $2.35 million to settle investor class action lawsuit

Odaily Planet Daily News, June 23rd, Bitcoin mining company Hut 8 has agreed to pay $2.35 million to settle a securities class action lawsuit filed by investors. The lawsuit accused Hut 8 of making misleading disclosures regarding operational risks and potential issues related to its merger with U.S. Bitcoin Corp. in 2023. The lawsuit's focus involves power and network connection problems at the King Mountain Bitcoin mining project in Texas, USA. Investors claimed that Hut 8 overstated the benefits of the merger and failed to adequately disclose relevant operational risks. According to the settlement agreement, Hut 8 does not admit to any wrongdoing or liability. Documents show that the $2.35 million settlement amount represents approximately 19.6% of the plaintiffs' estimated maximum recoverable loss of $12.08 million. The settlement is still subject to final court approval.