HUT
Get Ready for the Pump and Dump:
Management hiding stock ownership through undisclosed related party,
a stock-promoter cabal, and a host of left-for-dead assets
Initiation Report: January 18, 2024
J Capital Research ("J Cap") is a stock-research company. J Cap has analyzed the U.S.-listed company Hut 8 Corp. (“HUT”) and is hereby publishing the outcome and the conclusions of our analysis, based on publicly available information. We may be short shares of HUT, and, for this reason, there might be a conflict of interest.
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Limited lock-ups and undisclosed related-party shell corps lead us to believe insiders may soon sell shares.
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Ultimately, we strongly believe that shareholders are likely to feel the pain of being on the wrong side of an over-levered pump-and-dump, only to be left holding the most inefficient Bitcoin miner, which is unprofitable even at a Bitcoin price of over $60,000.
1. Apparently defaulted loan was for Pecos, Texas site. See page 185 HUT S-4: https://www.sec.gov/Archives/edgar/data/1964789/000110465923115414/tm235928-38_s4a.htm. Fine of $1 mln to the City of Niagara and an order to halt operations due to noise pollution: https://www.coindesk.com/policy/2023/04/05/us-bitcoincorp-expected-to-settle-with-city-to-resume-mining-in-niagara-falls/ Fine of $1 mln to the state of New York in partial settlement of a case charging USBTC made an illegal securities offering. See page 54 HUT S-4:
https://www.sec.gov/Archives/edgar/data/1964789/000110465923115414/tm235928-38_s4a.htm
2 Inclusive of $495 in stock, $160 mln in debt (per S4 February 13, 2023), $40 mln in planned AI purchases, and $50 mln in planned capital expenditure that has not been detailed.
3. See “SEC Charges Microcap Fraudsters for Roles in Lucrative Market Manipulation Schemes,” September 7, 2018 https://www.sec.gov/news/press-release/2018-182
4 See page 8, Massachusetts Consent Order, March 22, 2022, https://www.sec.state.ma.us/divisions/securities/download/20220322090340072.pdf
5 See https://www.newswire.ca/news-releases/former-ceo-of-i3-interactive-sues-for-wrongful-dismissal-885971437.html,
https://twitter.com/TimmyAAPL/status/1274831993004580866, https://iknnews.com/cannabis-wheaton-cbw-v-a-total-scam/
6. See PCAOB, https://pcaob-assets.azureedge.net/pcaob-dev/docs/default-source/enforcement/decisions/documents/105-2021-021-dale.pdf?sfvrsn=6cf66cdb_4
7. pro forma for the recent $7.1 mln land and substation acquisition
https://www.sec.gov/Archives/edgar/data/1964789/000110465923115414/tm235928-38_s4a.htm
2 Inclusive of $495 in stock, $160 mln in debt (per S4 February 13, 2023), $40 mln in planned AI purchases, and $50 mln in planned capital expenditure that has not been detailed.
3. See “SEC Charges Microcap Fraudsters for Roles in Lucrative Market Manipulation Schemes,” September 7, 2018 https://www.sec.gov/news/press-release/2018-182
4 See page 8, Massachusetts Consent Order, March 22, 2022, https://www.sec.state.ma.us/divisions/securities/download/20220322090340072.pdf
5 See https://www.newswire.ca/news-releases/former-ceo-of-i3-interactive-sues-for-wrongful-dismissal-885971437.html,
https://twitter.com/TimmyAAPL/status/1274831993004580866, https://iknnews.com/cannabis-wheaton-cbw-v-a-total-scam/
6. See PCAOB, https://pcaob-assets.azureedge.net/pcaob-dev/docs/default-source/enforcement/decisions/documents/105-2021-021-dale.pdf?sfvrsn=6cf66cdb_4
7. pro forma for the recent $7.1 mln land and substation acquisition
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