The firm’s share price decline came just before activist short-selling firm JCapital Research released an unverified report warning Hut 8 investors of an “upcoming pump and dump.”
Bitcoin (BTC) miner Hut 8 Corp. share price tumbled more than 23% on Jan. 18, the same day the firm rang the Nasdaq’s opening bell and another spread an unverified report alleging insiders are preparing to dump its stock.
Hut’s share price fell from $9.30 to as low as $7.10 in after-hours trading. The sell-off began around the same time as activist short-selling firm JCapital Research released a report titled “The Coming HUT Pump and Dump” which claimed that the firm’s Nov. 30 merger with fellow Bitcoin miner U.S. Bitcoin Corp (USBTC) could be placing Hut 8 investors in harm’s way.
JCapital Research— which admits to being short-side biased on its website — took aim at the recent $725 million merger deal, claiming that USBTC had a history of “legal trouble” and that the majority of the recently merged Bitcoin miner’s shares are held by an “undisclosed related party.”
