Overview
- Hut 8 agreed to a proposed $2.35 million settlement on Tuesday to resolve a securities class action tied to its 2023 all-stock merger with U.S. Bitcoin Corp.
- Plaintiffs said the company failed to disclose persistent energy curtailment and internet connectivity problems at King Mountain, a Texas mining joint venture in which USBTC held a 50% stake.
- In September 2025 Judge Victor Marrero pared the litigation to Securities Act omission claims about King Mountain, a narrowing that led the parties to accept mediation and the current proposal.
- Hut 8 expressly denied any wrongdoing in court filings while the settlement remains subject to preliminary and final approval from Judge Marrero in the Southern District of New York.
- The $2.35 million equals roughly 19.6% of plaintiffs' estimated maximum recoverable damages, which suggests modest individual payouts and clears one legal overhang as Hut 8 advances its AI and high-performance computing strategy.