Bitcoin Miner Hut8 Agrees to Pay $2.35 Million to Settle Investor Class Action Lawsuit Over 2023 Merger Disclosure Dispute with USBTC

Bitcoin mining company Hut 8 has agreed to pay $2.35 million to settle a securities class action lawsuit filed by investors. The lawsuit alleges that Hut 8 misdisclosed operational risks and potential issues related to the transaction during the 2023 merger with U.S. Bitcoin Corp.

The lawsuit focused on power and network connectivity issues at the King Mountain Bitcoin mining project in Texas, USA. Investors claim that Hut 8 exaggerated consolidated earnings and did not fully disclose related operational risks. According to the settlement agreement, Hut 8 does not acknowledge the existence of any offense or liability.

According to the documents, the settlement amount of $2.35 million represented approximately 19.6% of the plaintiff's estimated maximum recoverable loss of $1.08 million. The settlement plan is still subject to final court approval.