Hut 8 Responds to Short Seller Report Accusing Bitcoin Miner of Malpractice

Bitcoin HUT 8 J Capital
Last updated:
Author
Author
David Pokima
About Author

David is a finance journalist and a contributor to Cryptonews.com with a keen interest in breaking comprehensive, accurate, and reliable blockchain news.

Last updated:
Why Trust Cryptonews
Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews

Bitcoin miner Hut 8 has expressed confidence in its latest partnership with USBTC following a controversial report released by JCapital Research warning investors of possible risks.

In a brief response on Jan 19, the company stated that it had read the report and would provide all necessary updates deemed appropriate amid concerns by the wider digital asset community on social media spaces.

“(Hut 8) is aware of a short report issued on January 18 by J Capital Research, which is a self-proclaimed group of biased activists who clearly disclose that they will profit if a company’s share price declines. Hut 8 is reviewing the report and will provide updates as the Company deems appropriate.”

The Canadian miners expressed full confidence in the current management team and the board of directors following the merger adding that the partnership would achieve growth for all shareholders.

Sequel to the report flagging some financial activities related to the merger, the official statement assured the community of the strength of the merger and the company’s balance sheet.

J Capital’s revelation stuns the market

On Jan 18, the cryptocurrency market received a report accusing the miners of numerous acts that might expose investors to risks following its latest merger with USBTC.

The Bitcoin miner is accused of hiding stock ownership in a perceived pump-and-dump scheme. Per the report, the shares of the largest shareholders are disguised through an undisclosed related party.

To the financials, it was alleged that the company inherited a huge debt from the merger and paid over the value of the company’s assets as USBTC lost miners and its main equipment isn’t operating at optimal capacity.

Furthermore, an insider revealed that USBTC was weeks away from bankruptcy describing the merger as a “godsend” in addition to further claims of being linked with promoters that have been slapped with charges by the Securities and Exchange Commission (SEC).

Ultimately, we strongly believe that [HUT} shareholders are likely to feel the pain of being on the wrong side of an over-levered pump-and-dump, only to be left holding the most inefficient Bitcoin miner, which is unprofitable even at a Bitcoin price of over $60,000.”  

Consequently, the miner’s stock fell by 23.49% as traders panicked amid a pump-and-dump allegation. At press time, the asset is down 3.85% in the last 24 hours exchanging hands at $6.92.

While several crypto users panicked, others disregarded the report backing the company as it looks to expand operations ahead of the upcoming halving.

More Articles

Altcoin News
Bubblemaps Analysts Confident Libra Meme Coin Tied to Melania Creators
Ruholamin Haqshanas
Ruholamin Haqshanas
2025-02-17 07:53:18
Blockchain News
Australia’s AML Regulator Targets 13 Crypto and Remittance Firms for Compliance Shortfalls 
Shalini Nagarajan
Shalini Nagarajan
2025-02-17 07:04:30
Crypto News in numbers
editors
Authors List + 66 More
2M+
Active Monthly Users Around the World
250+
Guides and Reviews Articles
8
Years on the Market
70
International Team Authors