Case Summary

Hut 8

NASDAQ: HUT

Case Details

  • Mayiras v. Hut 8 Corp. et al.
  • Class Period:November 09, 2023 - January 18, 2024
  • Date Filed:February 07, 2024
  • Jurisdiction:U.S. District Court,
  • Docket Number: 1:24-cv-00904
  • Lead Plaintiff Deadline: April 8, 2024
Days Left to
Seek Plaintiff
47

Overview

A class action lawsuit has been filed against Hut 8 Corp. (“HUT 8” or the “Company”) (NASDAQ: HUT) and certain of the Company’s current and former senior executive officers alleging violations of the Securities Exchange Act of 1934.  The Hut 8 lawsuit is brought on behalf of all persons and entities who purchased or otherwise acquired Hut 8 securities between November 9, 2023 and January 18, 2024, both dates inclusive (the “Class Period”), and investors have until April 8, 2024 to seek appointment as lead plaintiff of the Hut 8 class action lawsuit.

Hut 8 is a cryptocurrency and data mining company.  The Company is engaged in Bitcoin mining and hosting, managed services, energy arbitrage, and operating traditional data centers.  The Company operates computing infrastructure which mines Bitcoin and delivers computing services to enterprise customers.  Hut 8 formed following the November 2023 merger of Hut 8 Mining Corp. (“Legacy Hut”) and U.S. Data Mining Group, Inc. d/b/a US Bitcoin Corp. (“USBTC”) (the “Merger”).  USBTC held a 50% interest in a joint venture Bitcoin mining facility, located in King Mountain, Texas (the “King Mountain JV”), which was acquired in the Merger.

On January 18, 2024, at approximately 10:30 AM EST, J Capital Research published a report which alleged, inter alia, that Hut 8’s merger with USBTC was premised on a number of alleged misstatements, including that: (1) the USBTC had an “undisclosed related party” as one of its largest shareholders, (2) one of USBTC’s core assets, the King Mountain JV, “has historically failed to provide energy and high-speed internet,” and (3) 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 8’s stock price fell $2.16, or 23.3%, to close at $7.12 per share on January 18, 2024, on unusually heavy trading volume.

Throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects.  Specifically, Defendants failed to disclose to investors that: (1) one of USBTC’s largest shareholders is an undisclosed related party; (2) USBTC’s core asset has historically failed to provide energy and high-speed internet; (3) the profitability of certain USBTC assets were overstated; and (4), as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

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If you purchased or otherwise acquired Hut 8 (NASDAQ: HUT) securities between November 9, 2023 and January 18, 2024, both dates inclusive, and suffered substantial losses, and you wish to serve as lead plaintiff in this lawsuit, we encourage you to submit your information to DiCello Levitt LLP via the form on this page. 

You can also contact DiCello Levitt partner Brian O’Mara by calling (888) 287-9005 or at investors@dicellolevitt.com. 

The deadline to apply to the Court to serve as a lead plaintiff in the Hut 8 lawsuit is April 8, 2024.

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