Hut 8 rejects the claims in the Jcapital report and refers to the official SEC documents

In a Jan. 24 announcement, bitcoin miner Hat8 refuted the claims made in a Jan. 18 brief from investment information services firm Jcapital Research. In its announcement, Hat 8 said the report was “full of misrepresentations, misinformation, speculative claims and baseless character attacks.”

The Bitcoin (BTC) miner has encouraged investors to read the company's official filings with the United States Securities and Exchange Commission and Canadian securities regulators, saying these documents are “reliable sources” about the company.

Hut 8 responds to the brief, which is “full of misinformation, misinformation, speculative claims and baseless character attacks.” CEO @jaimeleverton said, “Our board of directors and management team continue to have full confidence in our equity merger and we…

— Hut 8 (@Hut8Corp) January 24, 2024

Bill Tye, chairman of Hat 8's board of directors, said the board has full confidence in the current leadership.

“The board has full confidence in the company's equity, strategic planning and integration of the management team. Our focus is on the long-term vision and continued success of Hut 8. We are committed to ensuring that governance and oversight are aligned with the interests of our stakeholders.

A Jan. 18 brief from JCapital Research says there is a “coming Hut pump and dump” and investors are exposed to new risks after the miner merges with US Bitcoin Core (USBTC). USBTC is “backed by promoters with a history of legal trouble,” and Hat 8 chief strategy officer Michael Ho is a “used car salesman.” “History is riddled with involvement in SEC-reported pump-and-dumps, sports stock prices down 83 percent,” the report said.

USBTC also alleged that it had ties to a Hong Kong-based stockbroker group called the “Honig Group,” which the SEC charged with “known pump and dump” and “fraudulent schemes.” The report said USBTC was fined by the SEC for trying to hide its ties to this group.

As evidence for the claim, the report cites an SEC order against a US database group and links to an SEC notice against “a group of known microcap fraudsters based in South Florida led by Barry Honig.”

Related: Bitcoin Miner Hat 8 Stock Tanks 23% From Short Sellers Allegations

JCapital said the report is based on investor “activism”.

“be carefull. We are activists, usually on the short side. We do our best to find and present facts based on extensive primary research and using public sources. But if these stocks go down or, when we're long, go up in value, we'll profit. We do not give advice on how to trade stocks. We present our opinion.

In a January 24 announcement, Hut 8 dismissed JCapital's research report as “a deliberate attempt to spread false information about Hut 8, its operations, finances, management practices and CEO.”