Hut 8 Seeks Dismissal of Shareholder Lawsuit, Citing 296% Stock Recovery

Hut 8 Corp, the largest bitcoin miner, has filed to dismiss a shareholder lawsuit in New York federal court.

The suit claims Hut 8 misled investors about the merger with US Bitcoin Corp (USBTC) due to issues at a Texas mining facility.

Hut 8 blames the lawsuit on a January report by short seller J Capital Research which the company says orchestrated a “short-and-distort” campaign to crash its stock. After the report Hut 8’s stock dropped 23% and investors sued.

But Hut 8 points out its stock has rebounded 296% from January lows to $25.06 as of December 3. The company says the lawsuit has no merit, it disclosed USBTC’s limited operating history and protected forward looking statements under legal “safe harbor provisions”.

USBTC Merger and Legal Defense

Hut 8 merged with USBTC in November 2023 and acquired 50% of a Texas Bitcoin mining facility. Despite shareholder claims of misrepresentation the company says the stock’s rebound undermines the claim of investor harm.

“These short-and-distort cases are always dismissed”, Hut 8 said in its motion to dismiss with prejudice. The company also requests such other relief as the court deems appropriate.

The broader bitcoin mining industry is under pressure. In November the Public Utilities Commission of Texas (PUCT) introduced regulations requiring bitcoin miners to register their operations, including electricity demand and facility ownership. Non compliance carries fines of up to $25,000 per day.

Bitcoin Mining and Regulatory Updates

• Hut 8’s Stock Recovery: Up 296% from $6.33 in January to $25.06 in December.

• PUCT Regulations: Texas miners must register operations or face daily fines.

• SEC Lawsuit: Accuses Touzi Capital of defrauding crypto mining investors.

Hut 8’s legal defense highlights resilience in a volatile industry, with its stock growth serving as a key argument to dismiss shareholder claims.