Here’s another refined rewrite with a tighter, more newsroom-style flow:
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 lawsuit alleging it misled investors in connection with its all-stock merger with U.S. Bitcoin Corp. (USBTC).
The case, filed in the U.S. District Court for the Southern District of New York, stems from the November 2023 deal that combined the two companies.
Investors alleged that Hut 8, which has since pivoted toward AI data centers and high-performance computing, overstated the expected benefits of the merger and failed to disclose operational issues at King Mountain, a Texas bitcoin mining joint venture in which USBTC held a 50% stake. These issues reportedly included energy curtailments and internet connectivity disruptions.
The lawsuit gained traction after a January 2024 report by short seller J Capital Research, which triggered a drop of more than 23% in Hut 8’s share price.
Court filings show the $2.35 million settlement represents about 19.6% of estimated maximum recoverable damages, above the median and average recovery rates for similar Securities Act settlements in 2025.
As part of the agreement, Hut 8 denies any wrongdoing or liability. The company’s shares have risen more than 640% over the past year.
