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HUT 8 CORP. SHAREHOLDERS HAVE AN OPPORTUNITY TO RECOVER THEIR INVESTMENT LOSSES

Hut 8 Corp.

Bernstein Liebhard LLP announces that a securities class action lawsuit has been filed on behalf of investors who purchased or acquired Hut 8 Corp. (“Hut 8” or the “Company”) (NASDAQ: HUT) securities between November 9, 2023 and January 18, 2024, inclusive. The lawsuit seeks to recover Hut 8 shareholders’ investment losses.

If you purchased securities in Hut 8 between November 9, 2023 and January 18, 2024, inclusive, and would like to discuss your legal rights and/or options, please click “Join Class Action” above.

According to the Complaint, Hut 8 is a crypto currency and data mining company.  The Company is engaged in Bitcoin mining and hosting, managed services, energy arbitrage, and operating traditional data centers. The Company operates computing infrastructure that mines Bitcoin and delivers computing services to enterprise customers.

Hut 8 formed following the November 2023 merger of Hut 8 Mining Corp. and U.S. Data Mining Group, Inc. d/b/a US Bitcoin Corp. (“USBTC”) (the “Merger”).  USBTC held a 50% interest in a joint venture bitcoin mining facility, located in King Mountain, Texas (the “JV”), which was acquired in the Merger.

Throughout the Class Period, Defendants failed to disclose that: (1) one of USBTC’s largest shareholders was an undisclosed related party; (2) USBTC’s core asset has historically failed to provide energy and high-speed internet; and (3) the profitability of certain USBTC assets were overstated.

On January 18, 2024, at approximately 10:30 AM EST, 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 USBTC had an “undisclosed related party” as one of its largest shareholders, that the JV “has historically failed to provide energy and high-speed internet,” and (3) that the Company had misstated certain finances of the JV by failing to account for certain interest expenses. Citing individuals “highly familiar” with USBTC, the report stated that without the Merger, USBTC would have gone bankrupt and that USBTC had a value estimated to be 70% less than the approximately $745 million that Hut 8 paid to acquire it.

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

If you wish to serve as lead plaintiff, you must move the Court no later than April 8, 2024. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn’t require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.

Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal’s “Plaintiffs’ Hot List” thirteen times and listed in The Legal 500 for sixteen consecutive years.

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Contact Information:

Peter Allocco
Investor Relations Manager
Bernstein Liebhard LLP
https://www.bernlieb.com
(212) 951-2030
pallocco@bernlieb.com