Hut 8 to Pay $2.35 Million to Settle Bitcoin Merger Lawsuit

Hut 8 Mining Corp. and U.S. Bitcoin Corp. completed an all-stock merger on November 30, 2023, forming Hut 8 Corp. Investors alleged that the merger documents failed to adequately disclose power curtailment and internet connectivity risks at the King Mountain mining site in Texas, in which USBTC held a 50% stake. The risks were material to the asset’s value and investors’ decisions.

Hut 8 submitted a $2.35 million cash settlement to the U.S. District Court for the Southern District of New York on June 22, 2026. The settlement covers investors who acquired Hut 8 securities in the United States between February 13, 2023, and January 18, 2024. The amount represents about 19.6% of the estimated maximum recoverable damages of $12.08 million. Judge Victor Marrero granted preliminary approval on July 8, and Hut 8 did not admit wrongdoing.