Hut 8 Mining has agreed to a $2.35 million settlement in a class-action lawsuit over its merger with U.S. Bitcoin Corp, pending court approval.
Hut 8 Mining Corp. has agreed to a $2.35 million settlement in a class-action lawsuit concerning its merger with U.S. Bitcoin Corp. This settlement, which awaits approval from the U.S. District Court for the Southern District of New York, resolves claims from investors who acquired Hut 8 securities between February 13, 2023, and January 18, 2024.
The lawsuit asserted that Hut 8 misrepresented the merger's benefits and failed to disclose critical issues at the King Mountain mining site in Texas. This site was partly owned by U.S. Bitcoin prior to the merger, and the plaintiffs alleged that the company faced significant risks related to power supply and internet services, as well as undisclosed transactions among U.S. Bitcoin's major shareholders.
Background on the Merger
Completed in November 2023, the merger aimed to create a leading public mining operation with a substantial installed capacity. However, the lawsuit claimed that without this merger, U.S. Bitcoin risked bankruptcy, as its value was reportedly much lower than what Hut 8 paid for the acquisition.
In a recent ruling, Judge Victor Marrero dismissed several claims, focusing the case on whether the merger documents sufficiently outlined the risks associated with the King Mountain site, a key consideration for mining operations that depend on reliable power and network access.
Settlement Negotiations
The settlement discussions progressed after a mediation session on May 7, 2026, which did not yield immediate results but led to an agreement shortly after. The finalized settlement agreement was established on June 18, 2026.
While the $2.35 million settlement constitutes approximately 19.6% of the maximum recovery amount, plaintiffs view it as favorable compared to similar cases with only Securities Act claims remaining. The settlement still requires court approval before it can be finalized.
Following the merger announcement in February 2023, Hut 8 has maintained its focus on mining while diversifying into AI infrastructure, recently securing a significant lease for a new campus in Texas valued at $9.8 billion. The company has also adopted a modular infrastructure model to enhance operational flexibility between AI computing and bitcoin mining.
