Bitcoin Miner Hut 8 Responds to Short-Selling Report
Hut 8 Corp. addresses a report from JCapital Research that spread misinformation about the company.
Hut 8 Speaks Out Against Misinformation
Hut 8 Corp., a bitcoin mining firm, has responded to a report released by short-selling firm JCapital Research. The report stated that Hut 8's merger with US Bitcoin had the potential to be a pump and dump scheme. In a press release, Hut 8 called the report a deliberate attempt to spread misinformation about the company, its operations, finances, management practices, and key executives. The company stated that the report was filled with inaccuracies, misrepresented data, speculative claims, and unfounded character attacks.
The fallout from the report caused Hut 8's stock to slide over 23% in just 24 hours. However, Hut 8 remains steadfast in its rebuttal of the report, stating that it will not be derailed by activists who stand to profit from spreading misinformation. CEO Jaime Leverton criticized the report for its speculative accusations and misinformation.
Stock Decline and Aftermath
Since the release of the report, Hut 8's shares have failed to recover completely. The stock closed 5.3% lower yesterday at $6.33. However, there has been a 5.7% premarket increase in shares alongside a small bounce in the price of bitcoin. Hut 8 remains hopeful for a rebound.
The mining firm is confident in its operations and its merger with US Bitcoin. It maintains that the report's claims are baseless and detrimental to its reputation. Hut 8 emphasizes that it will not be swayed by short sellers and is focused on its long-term success in the bitcoin mining industry.