Overview
- On Tuesday, Hut 8 filed a proposed $2.35 million settlement to resolve a securities class action tied to its 2023 all-stock merger with U.S. Bitcoin Corp.
- Plaintiffs alleged the company failed to disclose persistent energy curtailment and internet connectivity problems at King Mountain, a Texas bitcoin-mining joint venture that USBTC owned 50% of before the merger.
- The case was narrowed by prior rulings that dismissed broader Exchange Act claims in September 2025, the parties accepted a mediator’s proposal in May 2026, and the current filing resolves the remaining Securities Act claims subject to court approval.
- The $2.35 million equals about 19.6% of the plaintiffs’ estimated $12.08 million maximum recoverable damages, a recovery rate above recent Securities Act-only settlement medians but likely to yield modest per-investor payouts.
- Hut 8 denies any liability under the agreement and the settlement clears a legal overhang as the company pursues a pivot to AI data centers and high-performance computing, with shares still well above prior-year levels despite a small post-announcement dip.