Hut 8 Corp. Securities Lawsuit Investigation

Shamis & Gentile P.A., a law firm that advocates for investors who are victims of securities fraud, is investigating potential claims against Hut 8 Corp. (HUT)

If you have held Hut 8 Corp. securities since at least November 9, 2023, you may be able to you may be able to pursue remedies on behalf of the company, at no cost to you.

About Hut 8

The company was formed in November 2023 following the merger of Hut 8 Mining Corp. (“Legacy Hut”) and U.S. Data Mining Group, Inc. d/b/a US Bitcoin Corp. (“USBTC”). Hut 8 operates in the cryptocurrency mining sector and manages digital asset infrastructure, including mining and data center operations.

What's Being Investigated

The investigation centers on alleged breaches of fiduciary duty and related securities law violations by Hut 8’s board and certain executives in connection with the November 2023 merger with US Bitcoin Corp. (“USBTC”). According to a securities class action complaint, Hut 8 and its officers allegedly made materially false and misleading statements regarding USBTC’s operations and financial condition.

The complaint contends that:

• Hut 8 and its executives suggested USBTC was financially sound, while a January 18, 2024 report by J Capital Research alleged USBTC was in far weaker condition, even approaching insolvency at the time of the merger.
• The company failed to disclose that one of USBTC’s largest shareholders was a related party.
• USBTC’s key asset, the King Mountain joint venture, historically failed to provide reliable energy and high-speed internet.

On January 18, 2024, publication of the J Capital Research report revealed these concerns, and Hut 8’s stock price declined approximately 23%. The investigation seeks to determine whether Hut 8 and its executives violated federal securities laws by making the alleged misstatements and omissions.

Key Timeline

• November 9, 2023: Investors allege this marks the beginning of the period during which misleading statements may have been made.
• November 2023: Merger of Legacy Hut and USBTC. Investors contend that disclosures about USBTC’s financial health were incomplete or misleading.
• January 18, 2024: J Capital Research report published. According to the complaint, this report revealed alleged misstatements and omitted facts, leading to a 23% decline in Hut 8’s stock price.
• Feb 7, 2024: Class action complaint filed in S.D.N.Y. naming Hut 8, CEO Jaime Leverton, and CFO Shenif Visram.

Why Investors May Be Concerned

Investors allege that Hut 8’s board and executives may have issued misleading statements or failed to disclose important facts about the financial condition of USBTC and the value of its assets at the time of the merger.

Potential concerns referenced in the class action complaint:

• USBTC’s financial stability and cash flows were overstated.
• A major USBTC shareholder was a related party, which was not properly disclosed.
• The King Mountain joint venture, a core USBTC asset, allegedly underperformed and faced operational issues.

These alleged actions could implicate the board’s oversight of critical risks and may raise questions about internal controls and the accuracy of corporate disclosures.

Your Rights and Next Steps

This is a shareholder investigation into whether Hut 8’s board and executives breached their duties to the company. In these cases, shareholders can act on the company’s behalf to demand changes or recovery of funds. If you have held Hut 8 shares since at least November 9, 2023 and continue to hold shares, you may have certain rights.

Potential next steps:

• Request that the board take corrective action.
• Pursue claims on behalf of the company for alleged breaches of fiduciary duty.
• Seek corporate reforms, governance changes, or recovery of funds for Hut 8 itself.

Shareholder participants in derivative actions may also be eligible for court-approved incentive awards in recognition of their service to the company and fellow shareholders.

Your Rights as a Shareholder

Securities investigations are time-sensitive. If you held Hut 8 Corp. shares since at least November 9, 2023 and still hold shares today, you may be able to seek corporate reforms, the return of funds back to the Company, and a court approved incentive award for you, all at absolutely no cost.

Please complete the form below to participate in the Hut 8 investigation.