Hut 8’s CEO resigned weeks after the seller’s allegations

Bitcoin mining company Hat8 has announced a leadership transition, replacing its CEO, weeks after “pump-and-pump” allegations against the company were published by controversial short-selling firm JCapital Research.

In the year On February 7, the Miami-based Bitcoin (BTC) mining company published a press release that its former CEO, Jaime Liverton, will be stepping down. Asher Gennot, a member of the company's board of directors, will now replace the former executive.

Hat 8 chairman Bill Tye said in the announcement that the company is at a “tipping point” as it has completed its merger with US Bitcoin Corporation (USBTC). The executive added that Gennot brings a “systematic, proven approach” to unlocking the potential of the merger.

Gennot said in the announcement that it will focus on strengthening operations and “creating sustainable stock value.” The executive expressed his confidence in the team and said that he will soon announce the latest strategy.

In September 2023, Hut 8 received final approval from the Supreme Court of Canada to complete its merger with USBTC. Following the merger, the company increased its BTC reserves in October.

We now publish with $HUT. We think the merger partner is an overvalued, Honig-backed, soon-to-be-bankrupt junior miner. The new combined company has the lowest efficiency ratio in the industry. We think this is an obvious promotion. Report at https://t.co/LtOVDtLcER

— JCap (@JCap_Research) January 18, 2024

However, on January 19, Hat 8 shares were short-sold after JCapital Research published a lawsuit warning Hat 8 investors of an “impending pump and dump”. The company said its merger with miner USBTC could put investors at risk.

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The research firm, which said it was biased against the short side, said USBTC had a history of “legal trouble” in reference to the $725 million merger agreement. The company noted in the report that most of the combined Bitcoin mining shares are owned by an “unknown related party”. After the report was published, Hutt shares fell from $9.30 to $7.10.

After the report, Hat 8 dismissed the report as misleading. The company said it was a “deliberate attempt to spread misinformation” and was full of inaccurate information and misinformation. The company also alleged that the report was designed “solely to negatively impact Hut 8's stock price for the benefit of a short seller.”

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