Bitcoin Miner Hut 8 Hits Out at Short-Selling Report

Hut's shares slid more than 23% on Jan. 18 when short-selling firm JCapital Research said the USBTC merger had the makings of a pump and dump.

AccessTimeIconJan 24, 2024 at 1:33 p.m. UTC
Updated Mar 8, 2024 at 8:24 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Hut 8 Corp. (HUT) Wednesday morning called last week's report from JCapital Research "a deliberate attempt to spread misinformation about Hut 8, its operations, finances, management practices, and key executives."

In a press release, Hut 8 sad the report was "filled with inaccuracies, misrepresented data, speculative claims, and unfounded character attacks."

  • Why Worldcoin Is Launching a Layer 2
    20:07
    Why Worldcoin Is Launching a Layer 2
  • Polymarket Traders Bet on Fed Rate Cuts; Bitcoin Spot ETFs Register Five-Day Withdrawals Streak
    02:17
    Polymarket Traders Bet on Fed Rate Cuts; Bitcoin Spot ETFs Register Five-Day Withdrawals Streak
  • Base Monthly Active Addresses Increased by 160% in March: Nansen
    00:50
    Base Monthly Active Addresses Increased by 160% in March: Nansen
  • Bitcoin Halving: We Answer Your Questions
    04:16
    Bitcoin Halving: We Answer Your Questions
  • The mining firm's Nasdaq-listed stock fell from $9.17 on Jan.18 to $7 a little over 24 hours later after short-selling firm JCapital Research released a report claiming that Hut 8's merger with fellow miner US Bitcoin was a pump and dump waiting to happen.

    The report said that USBTC had a history of legal trouble, had defaulted on a loan and paid two government fines, one of which was for committing securities violations.

    "We will not be derailed by activists who stand to profit from spreading misinformation and making defamatory character attacks,” said Hut 8 CEO Jaime Leverton. "The short report is riddled with speculative accusations and misinformation."

    HUT shares thus far have failed to bounce since Jan. 18 tumble, closing lower by 5.3% yesterday to $6.33. Shares are higher by 5.7% premarket alongside a modest bounce in the price of bitcoin.

    Edited by Stephen Alpher.




    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

    Jamie Crawley

    Jamie Crawley is a CoinDesk news reporter based in London.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.



    Read more about