Hut 8 Settles Investor Lawsuit, Stock Surges on AI Pivot and New Rating
Hut 8 (NASDAQ: HUT) agreed to pay $2.35 million to settle a class action lawsuit over its 2023 merger with U.S. Bitcoin Corp, which alleged misleading statements about energy and internet issues at a Texas mining site. Despite the lawsuit and ongoing unprofitability, the stock surged 662% in 12 months, driven by its pivot to AI data centers. Lucid Capital Markets initiated coverage with a buy rating and $226 target, citing a $4.25 billion Texas data center lease to Nvidia. The settlement, carrying no admission of liability, requires court approval.
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Hut 8 Stock Surges Despite $2.35 Million Lawsuit Settlement
Shares of Hut 8 (HUT), a crypto mining and AI infrastructure company, surged on June 22, 2026, recovering from a 7% pre-market drop after agreeing to a $2.35 million settlement in a securities class action lawsuit. The lawsuit alleged that the company misled investors about issues related to its 2023 merger with U.S. Bitcoin Corp (USBTC), specifically regarding energy and internet problems at the King Mountain mining site. A judge had previously dismissed most claims, including fraud, in September 2025. The settlement, which carries no admission of liability, represents about 19.6% of the plaintiffs' estimated maximum recoverable damages and still requires court approval. Hut 8 has repositioned itself as an energy-and-AI platform with $16.8 billion in contracted AI data center lease revenue, while also holding a stake in the Trump-family-backed American Bitcoin. The stock traded 2.36% higher intraday near $123.
Yahoo FinanceHut 8 Stock Recovers After Slump Amid $2.35 Million Lawsuit Settlement
Shares of Hut 8 (NASDAQ: HUT), a Bitcoin miner turned AI-and-energy infrastructure platform, initially fell 7% in pre-market trading on June 22 but recovered to trade 2.36% higher intraday. The stock movement coincides with Hut 8's agreement to pay $2.35 million to settle a proposed securities class action lawsuit. Investors alleged the company misled the market about energy and internet issues at a Texas Bitcoin mining joint venture (King Mountain) tied to its 2023 merger with U.S. Bitcoin Corp. A judge dismissed most of the claims in September 2025 but allowed narrower disclosure claims to proceed. The settlement carries no admission of liability and awaits court approval. Hut 8 also holds a majority stake in American Bitcoin, the Trump-family-backed venture, and has $16.8 billion in contracted AI data center lease revenue. Bitcoin itself fell nearly 3.8% in 24 hours to roughly $62,361.
Yahoo FinanceHut 8 To Pay $2.35 Million To Settle Investor Lawsuit
Hut 8 (NASDAQ: HUT) has agreed to pay $2.35 million to settle a class action lawsuit related to its November 2023 all-stock merger with U.S. Bitcoin Corp. Investors alleged that the company, now pivoted to AI data centers, overstated merger benefits and failed to disclose energy curtailment and internet connectivity issues. The lawsuit gained momentum after a critical report by short seller J Capital Research in January 2024 caused Hut 8's share price to drop over 23%. The settlement represents 20% of the maximum possible damages. Hut 8 denies any wrongdoing. Despite the lawsuit, HUT stock has surged 662% over the past 12 months to $121.04.
Yahoo FinanceHut 8 To Pay $2.35 Million To Settle Investor Lawsuit
Hut 8 (NASDAQ: HUT) has agreed to pay $2.35 million to settle a class action investor lawsuit related to its 2023 all-stock merger with U.S. Bitcoin Corp. The lawsuit alleged that Hut 8, which has pivoted to AI data centers, misled investors by overstating the transaction's benefits and failing to disclose energy curtailment and internet connectivity issues. The case gained momentum after short seller J Capital Research published a critical report in January 2024, causing Hut 8's share price to drop over 23%. According to a court filing, the settlement represents 20% of the maximum possible damages. Hut 8 denies any wrongdoing as part of the settlement, and plaintiffs cannot refile the lawsuit. Despite the legal issues, HUT stock has surged 662% over the past 12 months to $121.04 per share.
Yahoo FinanceHut 8 Stock Gets New Buy Rating from Lucid Capital Markets
Lucid Capital Markets initiated coverage of Hut 8 (NASDAQ: HUT) with a buy rating and a $226 price target, implying 82% upside from current levels. The stock has rallied 683% over the past year and 143% year-to-date to $124.44. Analysts cite Hut 8's pivot from Bitcoin mining to becoming an AI data centre landlord, despite the company remaining unprofitable with negative EPS of -$2.90. The firm recently closed a $4.25 billion bond sale (with $17 billion in orders) for a 352-megawatt Texas data centre that will be leased to Nvidia. Lucid Capital calls the investment case centered on execution and expects delivery on new AI sites in coming years.
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