On January 18, 2024, J Capital Research published a report which alleged, inter alia, that Hut 8’s merger with USBTC was premised on a number of alleged misstatements, including that: (1) USBTC had an “undisclosed related party” as one of its largest shareholders, (2) one of USBTC’s core assets, the King Mountain JV, “has historically failed to provide energy and high-speed internet,” and (3) the Company had misstated certain finances of the King Mountain JV by failing to account for certain interest expenses. The J Capital Research report stated that USBTC had a value estimated to be 70% less than the approximately $745 million that Hut 8 paid to acquire it.

Following this news, Hut 8’s stock price fell $2.16, or 23.3%, to close at $7.12 per share on January 18, 2024, on unusually heavy trading volume.

According to the complaint and throughout the Class Period, the defendants made false and/or misleading statements and/or failed to disclose that: (1) one of USBTC’s largest shareholders is an undisclosed related party; (2) USBTC’s core asset - the King Mountain JV - has historically failed to provide energy and high-speed internet; and (3) the profitability of certain USBTC assets were overstated.

Investors who purchased or acquired Hut 8 Corp. securities between November 9, 2023 and January 18, 2024, may no later than April 8, 2024, seek to be appointed as a lead plaintiff representative of the class.