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Bitcoin Miner Hut 8 Appoints New CEO Weeks Following Short-Selling Report

Bitcoin Miner Hut 8 Appoints New CEO Weeks Following Short-Selling Report

CryptopotatoCryptopotato2024/02/09 00:31
By:Mandy WilliamsMore posts by this author

J Capital Research called HUT an “obvious pump and dump target,” alleging that Hut 8 inherited “a pile of debt” from USBTC.

Bitcoin mining company Hut 8 has announced a leadership transition roughly three weeks after an activist short-selling firm published a report containing allegations against the miner’s management practices and finances.

According to an official release , former CEO Jaime Leverton will be immediately succeeded by Asher Genoot, who has served as Hut 8’s president since November 2023.

Hut 8 Announces New Chief Executive

Genoot co-founded Bitcoin miner U.S. Bitcoin Corp (USBTC) and served as the firm’s president before merging with Hut 8 last year. The merger deal saw Hut 8’s common stock (TSX) change to New Hut (HUT) as the new company was named Hut 8 Corp.

The Hut 8 Board of Directors said the completion of the merger deal signaled the need to set a new strategic direction and a leadership transition. Board chair Bill Tai said Asher will bring a disciplined and proven approach to unlock the combined company’s potential.

Commenting on the latest development, the new CEO said: “As I work with the board to define a new strategy for the company, I am focused on strengthening operations, driving profitable growth, and creating lasting shareholder value.

I am more confident than ever in the strength of our team and ability to execute. I look forward to sharing more details about our near-term strategy and working closely with the full organization and board to execute on it.”

Leverton, who has served Hut 8 as CEO for three years, will depart the company as the board has decided.

Short-seller Accusations

Hut 8’s transition into a new leadership comes within a month after J Capital Research called HUT an “obvious pump and dump target,” as Hut 8 inherited a pile of debt from USBTC. The January 18 report alleged that USBTC may have gone bankrupt if Hut 8 had waited one month to close the merger deal.

Per J Capital, USBTC is backed by promoters with a history of legal trouble. The mining company appears to have defaulted on a loan and paid government fines twice, its founders have limited share lock-ups, and insiders may soon offload their stock.

However, the combined company has countered the claims, insisting that the report contains inaccuracies, misrepresented data, and false characterizations about its business.

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