Hut 8, the Bitcoin and digital asset mining firm, has responded to a critical report by J Capital Research regarding its recent merger with U.S. Bitcoin Corp (USBTC). In a statement released on January 19, Hut 8 criticized J Capital, referring to them as a group of biased activists who would benefit from a decline in the company’s share price. Despite J Capital’s claim that the merger was a result of a failed process with no other interested parties, Hut 8 expressed confidence in the merger and its future success. The company did not directly address any other points raised in the report but stated that they are reviewing it and will provide more information if necessary.
J Capital’s report primarily focused on USBTC and alleged questionable activities, including connections to stock promoter groups and a history of corruption in one executive. It also claimed that USBTC’s core asset, a mining facility in Texas, has failed to deliver required energy and internet connectivity for crypto mining. J Capital further warned of potential stock dilution and insider selling in USBTC. As for Hut 8, J Capital raised concerns about the suspended North Bay mining facility, past sanctions against the company’s former auditor, and its listing on a TSX Venture board associated with frauds and scams.
In response to the report, the Schall Law Firm announced an investigation into Hut 8, potentially leading to a class action lawsuit. Hut 8 did not specifically address this matter in their statement.