- Hut 8 issued a response to the controversial report by JCapital Research, criticizing its findings.
- The company accused JCapital Research of engaging in market manipulation and endangering shareholders.
- Hut 8 retaliated against these allegations, deeming them unfounded and misleading.
Hut 8 Corp., a cryptocurrency mining company, recently released a press statement addressing the contentious report presented by JCapital Research. JCapital Research had accused the Bitcoin miner of manipulating the market and posing risks to its shareholders.
Prior to this incident, JCapital Research had published a report shedding light on multiple issues encountered by US Bitcoin, which had merged with Hut 8 in December 2023. The report detailed legal troubles, outdated equipment, and a fine imposed for violating securities regulations—problems that the short-selling company had uncovered.
JCapital Research alleged that despite being aware of these issues, Hut 8 proceeded with the merger, thus jeopardizing the interests of its shareholders and displaying deliberate market manipulation.
However, Hut 8 officials refuted these accusations, asserting that the report contained false and misleading information. The Bitcoin miner also highlighted the speculations made in the document.
Hut 8 believed that JCapital Research published the report with the intent of profiting from the decline in the company’s stock price. Notably, the allegations caused the Bitcoin miner’s securities to plummet by 28%, as reported by TradingView.
Between January 18 and January 19, 2024, the value of the company’s shares dropped from $9.2 to $7. At present, the figure stands at $6.5.
As a reminder, Hut 8 recently obtained court approval to acquire four power plants.