In a statement released on January 24, Bitcoin miner Hut 8 strongly rejected the allegations made against it in a short-selling report by investment information services firm Jcapital Research on January 18. Hut 8 declared that the report was filled with inaccuracies, distorted data, speculative claims, and baseless character attacks. The company urged investors to refer to its official filings with the U.S. Securities and Exchange Commission (SEC) and Canadian securities regulators, asserting that these filings are reliable sources of information about the company.
Hut 8's board chairman, Bill Tai, expressed full confidence in the current management, emphasizing that the board stands behind the company's equal merger, strategic plan, and management team. Tai affirmed that the focus remains on Hut 8's long-term vision and continued success, with a commitment to ensuring governance and oversight in the best interests of stakeholders.
Jcapital Research's short-selling report from January 18 warned of a potential "Hut pump and sell," indicating new risks for investors following the miner's merger with U.S. Bitcoin Core (USBTC). The report alleged that USBTC, backed by promoters with a history of legal troubles, had ties to a Hong Kong-based stock promoter group known as the "Honig Group." USBTC was reportedly fined by the SEC for attempting to conceal its connections to this organization.
The report also highlighted USBTC's association with a figure named Barry Honig, described as a "used car salesman" with a history of engaging in pump-and-dump schemes. Jcapital cited the SEC's order against a U.S.-based data mining group and charges against a group of South Florida microcap fraudsters led by Barry Honig as evidence for its claims. Hut 8, in its January 24 response, rejected Jcapital's report, accusing it of deliberately spreading misinformation about the company's operations, finances, management practices, and key executives.
