$2.35M Deal Closes Investor Lawsuit Linked to Hut 8’s U.S. Bitcoin Merger Strategy

Here’s another refined rewrite with a slightly sharper newsroom style:

The former bitcoin mining firm has denied any wrongdoing related to its 2023 merger with U.S. Bitcoin Corp.

Hut 8 (HUT) has agreed to pay $2.35 million to settle a securities class action alleging it misled investors in connection with its all-stock merger with U.S. Bitcoin Corp. (USBTC), completed in November 2023.

The lawsuit, filed in the U.S. District Court for the Southern District of New York, centered on claims that Hut 8 overstated the expected benefits of the deal and failed to disclose operational challenges at King Mountain, a Texas bitcoin mining joint venture in which USBTC held a 50% stake. The issues reportedly included energy curtailments and intermittent internet connectivity.

The case gained momentum following a January 2024 report from short seller J Capital Research, which contributed to a drop of more than 23% in Hut 8’s share price.

According to court filings, the $2.35 million settlement represents roughly 19.6% of estimated maximum recoverable damages, above typical median and average recovery rates for similar securities settlements in 2025.

As part of the agreement, Hut 8 continues to deny liability or wrongdoing. Despite the legal resolution, the company’s shares have surged more than 640% over the past year.