hut 8 -- usbtc merger overvaluation

case overview

CaseMayiras v. Hut 8 Corp., No. 24-cv-00904
CourtU.S. District Court, Southern District of New York
FiledFebruary 2024
Class PeriodNovember 9, 2023 — January 18, 2024
Stock Drop-23.3% on j capital report
StatusActive (lead counsel appointed)

allegations

  1. undisclosed related party: one of usbtc’s largest shareholders is an undisclosed related party
  2. asset failure: usbtc’s core asset — the king mountain jv — has historically failed to provide energy and high-speed internet
  3. overstated profitability: the profitability of certain usbtc assets was overstated
  4. inflated price: the $745 million hut 8 paid to acquire usbtc was vastly inflated — j capital estimated usbtc’s value was approximately 70% less than the acquisition price

triggered by j capital research report on january 18, 2024. stock fell $2.16/share (23.3%) on unusually heavy volume. lead counsel (berger montague, susman godfrey, edelson pc) appointed september 2024. short interest has risen to 17.8% of float.


sources


last updated: february 22, 2026

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