Hut 8, a Bitcoin mining company, has disclosed a change in leadership, appointing a new CEO in the wake of recent “pump-and-dump” accusations made by the contentious short-selling entity JCapital Research.
On Feb 7, the Bitcoin mining firm headquartered in Miami issued a press statement announcing the departure of its ex-CEO, Jaime Leverton. Stepping into the role is Asher Genoot, the current president and a distinguished member of the company’s board of directors, succeeding the former executive.
Bill Tai, the chairman of Hut 8’s board, emphasized the company’s transformative juncture following the successful merger with US Bitcoin Corp (USBTC). Tai stated that this marks a crucial turning point for Hut 8. Moreover, he highlighted Genoot’s involvement, noting the expectation for a systematic and proven approach to harness the merger’s potential fully.
Genoot, outlining the strategic direction, conveyed a commitment to fortifying operations and fostering enduring shareholder value. However, Genoot promised the imminent release of details regarding the company’s short-term strategy, expressing confidence in the team.
Having obtained the final approval from the Canadian Supreme Court in Sept 2023 for the merger with USBTC, Hut 8 bolstered its Bitcoin reserves in Oct.
Hut 8 Faces Allegations Amid Merger
Nonetheless, on Jan 19, Hut 8 experienced a significant decline in its stock value following the release of allegations by the short-selling firm JCapital Research. The accusations cautioned Hut 8 investors about a potential “pump and dump” scheme and asserted that the merger with fellow miner USBTC might expose investors to risks.
The research firm, openly acknowledging its short-side bias, cited the $725 million merger agreement and alleged a track record of “legal trouble” for USBTC. However, the report emphasized that a significant portion of the combined Bitcoin miner’s shares is held by an “undisclosed related party.” Following the report’s publication, Hut shares dropped from $9.30 to $7.10.
After releasing the report, Hut 8 vehemently refuted its claims, dismissing it as deceptive. The company asserted that the report deliberately disseminated false information with inaccuracies and distorted data. Accusing the report’s creators of having ulterior motives, Hut 8 contended that it was crafted with the sole intention of adversely affecting the company’s stock value for the personal gain of the short seller.
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