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id: 1098

Hut 8 Corp. (HUT) J Capital USBTC Findings Case

S.D. New York
Case number
09 Nov 2023
Class period Start
18 Jan 2024
Class period End
08 Apr 2024
Lead Plaintiff motion deadline
  • $HUT investor filed the claim vs. Hut 8 Corp. for hiding important information in the merger with USBTC, which later led to thier losses.
  • In January, J Capital's exposing report sent $HUT lower by 23%, wiping out over $190M+ shareholder value.
On January 18, 2024, J Capital Research published a report alleging Hut 8’s (HUT) merger with USBTC was premised on several misstatements, including:
  • USBTC had an “undisclosed related party” as one of its largest shareholders,
  • USBTC’s core asset, the King Mountain JV, “has historically failed to provide energy and high-speed internet,”
  • The company had misstated certain finances of the King Mountain JV by failing to account for certain interest expenses.
  • Citing individuals “highly familiar” with USBTC, the report stated that, without the Merger, USBTC would have undergone bankruptcy and that USBTC had a value estimated to be 70% less than the approximately $745 million that Hut 8 paid to acquire it.
On this news, $HUT fell 23.3% and lost over $192 million of its market cap, seriously damaging shareholders.

In November 2023, Hut 8 was formed in the merger of Hut 8 Mining Corp. and U.S. Data Mining Group, Inc. d/b/a US Bitcoin Corp. (USBTC). USBTC held a 50% interest in a JV bitcoin mining facility, located in King Mountain, Texas, which was acquired in the Merger.

Considering the facts in the report, Investors might suspect Hut 8 of hiding material facts about the business, which consequently led to their losses, when the truth was discovered.
Case Status
Lead Plaintiff Appointed
Alleged Offence
Misleading Statements
Financial Misrepresentation
Failure to Disclose
Suspected Party
Hedge Fund
Security Type
Trade Direction
Shock Event Date
18 January 2024
Filing date
07 February 2024
Lead Plaintiff Deadline
08 April 2024
Hon. Jennifer H. Rearden
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