Here’s another clean rewrite with a more concise, editorial tone:

The former bitcoin mining company has denied any wrongdoing linked to its 2023 merger with U.S. Bitcoin Corp.

Hut 8 (HUT) has agreed to pay $2.35 million to settle a securities class action lawsuit alleging it misled investors around its all-stock merger with U.S. Bitcoin Corp. (USBTC), completed in November 2023.

The case, filed in the U.S. District Court for the Southern District of New York, focused on claims that Hut 8 overstated the benefits of the deal and failed to disclose operational issues at King Mountain, a Texas-based bitcoin mining joint venture in which USBTC held a 50% stake. Those issues allegedly included energy curtailments and unreliable internet connectivity.

The lawsuit gained traction after a January 2024 report from short seller J Capital Research, which helped trigger a more than 23% drop in Hut 8’s share price.

Court filings indicate the $2.35 million settlement represents about 19.6% of estimated maximum recoverable damages, above median and average recovery levels for comparable securities cases in 2025.

Hut 8 continues to deny liability as part of the agreement. The company’s shares have climbed more than 640% over the past year.