Hut 8 Faces Shareholder Lawsuit Investigation
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 06 2026
0mins
Should l Buy HUT?
Source: Globenewswire
- Lawsuit Investigation: Bragar Eagel & Squire, P.C. is investigating Hut 8 Corp. for potential breaches of fiduciary duty by its board of directors, particularly in light of a class action complaint filed on February 7, 2024, covering the period from November 9, 2023, to January 18, 2024.
- Merger Controversy: Following Hut 8's merger with USBTC in November 2023, which included a 50% stake in the King Mountain JV in Texas, a report by J Capital Research alleged that the merger was based on several false statements, potentially exposing shareholders to significant losses.
- Stock Price Plunge: On January 18, 2024, Hut 8's stock price fell by $2.16, or 23.3%, closing at $7.12 per share, reflecting severe market concerns regarding the company's financial health following the negative news.
- Investor Rights Protection: The law firm encourages long-term shareholders to reach out to discuss their legal rights, indicating a commitment to support affected investors and ensure their interests are protected in the legal proceedings.
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Analyst Views on HUT
Wall Street analysts forecast HUT stock price to fall
13 Analyst Rating
13 Buy
0 Hold
0 Sell
Strong Buy
Current: 47.360
Low
17.50
Averages
24.54
High
33.00
Current: 47.360
Low
17.50
Averages
24.54
High
33.00
About HUT
Hut 8 Corp. is an energy infrastructure platform. The Company's segments include Power, Digital Infrastructure, Compute, and Other. The Company's Power segment acquires, develops, and manages critical energy assets such as interconnects, powered land, and other electrical infrastructure to address the load demands of energy-intensive applications such as Bitcoin mining and high-performance computing. Its Power segment consists of power generation and managed services. Its Digital Infrastructure segment consists of CPU Colocation and ASIC Colocation services. The Company's Compute segment consists of Bitcoin Mining, GPU-as-a-Service, and Data Center Cloud operations. The Company, through its subsidiary, American Bitcoin Corp., is focused exclusively on industrial-scale Bitcoin mining and strategic Bitcoin reserve development. The Company's platform spans approximately 1,020 megawatts of energy capacity under management across 15 sites in the United States and Canada.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Critical Support Levels: Analysts highlight the $58,000 200-week moving average and $54,000 realized price as crucial support levels, with potential breaches possibly undermining market confidence and leading to further price adjustments.
- Mining Stocks Performance: As Bitcoin's price rebounds, several crypto mining stocks rose in pre-market trading on Wednesday, with IREN and BMNR both up nearly 3%, reflecting ongoing market interest in cryptocurrencies.
- Market Sentiment Shift: Despite the rise in Bitcoin's price, market sentiment remains bearish, particularly on the Stocktwits platform where BTC's retail sentiment is in the 'bearish' territory, indicating cautious investor outlooks for future trends.
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- Bitcoin Price Movement: Bitcoin is trading around $67,433, up 0.3% over the past 24 hours, yet remains in a mid-low range, indicating a lack of strong buying confidence and reflecting the fragility of investor sentiment.
- Fear & Greed Index: The current Fear & Greed Index is in the 'extreme fear' zone, suggesting persistent low market sentiment; despite occasional relief rallies, demand remains brittle and fails to generate sustained buying momentum.
- Mining Stocks Performance: Despite Bitcoin's weakness, crypto mining stocks like CIFR, IREN, MARA, HUT, and WULF showed strong pre-market gains, with CIFR up 2% and IREN up 1%, indicating relative optimism towards these stocks in the market.
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- Nvidia's Strong Performance: Nvidia's data center segment grew 75% year-over-year last quarter, and it expects cumulative GPU orders to exceed $1 trillion by 2027, highlighting its competitive strength in the AI market.
- Rise of Nebius Group: Nebius Group reported a 547% year-over-year revenue increase in Q4, achieving an annualized run rate of $1.2 billion, with expectations to reach $7 billion to $9 billion by the end of 2026, underscoring its critical role in AI cloud infrastructure.
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See More
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- Surging Data Center Demand: According to Dell'Oro Group, global data center spending is projected to soar to $1.7 trillion by 2030, driving investments in AI infrastructure, particularly benefiting chipmakers and data center builders.
- Strong Nvidia Performance: Nvidia reported a 75% year-over-year revenue growth in its data center segment, with a sequential increase of 22%, indicating robust demand in the AI market and high profit margins, suggesting continued growth ahead.
- Rapid Growth of Nebius Group: Nebius Group achieved a remarkable 547% year-over-year revenue increase in Q4, reaching an annualized revenue of $1.2 billion, with expectations to grow to $7 billion to $9 billion by the end of 2026, highlighting its strong position in AI cloud infrastructure.
- Long-Term Contracts for Hut 8: Hut 8 signed a 15-year, $7 billion deal with Fluidstack and Anthropic, initially supplying 245 megawatts of power, with over 2 gigawatts of data center capacity to be delivered, showcasing significant growth potential in the AI infrastructure sector.
See More
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- Purpose of Sale: The proceeds from the sale will be used to support the company's expansion into artificial-intelligence computing.
- Market Reaction: Following the announcement, shares of MARA Holdings experienced a significant spike.
- Strategic Shift: The move indicates a strategic shift for MARA Holdings towards integrating AI technology into its operations.
See More
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- Snowflake Options Volume: Snowflake Inc (Ticker: SNOW) experienced an options trading volume of 30,858 contracts today, representing around 3.1 million shares, or about 51.1% of its average daily trading volume of 6.0 million shares over the past month, showcasing heightened investor attention to its market dynamics.
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