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

Odaily reported on June 23 that Bitcoin mining company Hut 8 has agreed to pay $2.35 million to settle a securities class-action lawsuit filed by investors. The lawsuit alleged that Hut 8 made misleading disclosures regarding operational risks and potential issues related to its merger with U.S. Bitcoin Corp. in 2023. The focus of the lawsuit involved power and network connectivity issues 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 related operational risks. Under the settlement agreement, Hut 8 does not admit 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 still requires final approval from the court.