The Bitcoin miner, formerly based in Toronto and now headquartered in Miami after merging with US Bitcoin, said it’s “reviewing” a report by short seller J Capital Research that alleges Hut 8 overpaid for the transaction. The report also claims that US Bitcoin management has relationships with stock promoters who’ve been sanctioned in the past by regulators. (The Logic)

Talking point: Hut 8’s board and management “continue to have confidence” in the merger, the company countered, calling J Capital “a self-proclaimed group of biased activists.” The short seller released the report on Jan. 18, the same day Hut 8 rang the opening bell at the Nasdaq to celebrate closing the merger. The deal concluded 10 months after it was first announced and two months later than the companies anticipated. Hut 8 took on a loan of up to US$50 million from Coinbase and sold bitcoin it produced in 2023 to fund operations while the merger dragged on. The merger saved US Bitcoin from bankruptcy, according to the short-seller report, which questioned why Hut 8 would acquire a company in such dire financial straits.