- Hut 8 Mining is under investigation after it was accused of withholding information from investors and making misleading statements
- National shareholder rights litigation firm, Schall Law, is investigating to determine if Hut 8 issued false and/or misleading statements and/or failed to disclose information pertinent to investors
- J Capital Research released a report calling Hut 8 an unprofitable, over-levered pump-and-dump
- Hut 8 Mining stock closed trading at C$9.24 per share
Hut 8 Mining (TSX:HUT) is under investigation after claims the company withheld information from investors and made misleading statements.
National shareholder rights litigation firm, Schall Law, is investigating the diversified Bitcoin stock to determine if it issued false and/or misleading statements and/or failed to disclose information pertinent to investors.
It came to Schall Law’s attention after J Capital Research released a report titled: “The Coming HUT Pump and Dump: Management hiding stock ownership through undisclosed related party, a stock-promoter cabal, and a host of left-for-dead assets.”
J Capital’s accusations towards Hut 8 conclude that, “Ultimately, we strongly believe that shareholders are likely to feel the pain of being on the wrong side of an over-levered pump-and-dump, only to be left holding the most inefficient Bitcoin miner, which is unprofitable even at a Bitcoin price of over $60,000.”
Hut 8’s team issued a response on Friday, stating the company is aware of a short report, calling J Capital Research, a “self-proclaimed group of biased activists who clearly disclose that they will profit if a company’s share price declines.”
Schall Law is looking for investors of the company who suffered a loss to contact them.
Hut 8 rings the NASDAQ opening bell on Thursday. (Source: NASDAQ)
The investigation was announced a day after Hut 8’s CEO, Jaime Leverton, and team rang the NASDAQ’s opening bell to mark the completion of its all-stock merger with U.S. Data Mining Group, Inc. doing business as U.S. Bitcoin Corp.
In its Friday response, Hut 8 stated it is reviewing the J Capital Research report and will provide updates later. In the meantime, the company’s management team and board of directors insisted that they continue to have confidence in the merger, the company’s balance sheet, and the future success of the organization.
Stockhouse has reached out to Hut 8 for additional comment, but has not received a reply as of Friday afternoon publishing time.
Hut 8 Mining Corp. is one of North America’s largest digital asset miners. It operates with one of the highest capacity rates in the industry and one of the highest inventories of self-mined bitcoin of any miner or publicly traded company globally. Hut 8 also collects revenue from its growing high-performance computing division, which provides custom and scalable infrastructure solutions.
Hut 8 Mining stock closed trading at C$9.24 per share. In late December 2023, Hut 8 spiked at more than C$23 a share. Its shares have declined 30.42 per cent this week and trade 27.24 per cent lower than this time, last year.
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