J Capital short Hut 8 Corp., says management hiding stock ownership

In a recently published report, J Capital Research says it is short Hut 8 Corp. and that management is “hiding stock ownership through undisclosed related party, a stock-promoter cabal, and a host of left-for-dead assets.” Hut 8 recently merged with U.S. Bitcoin Corp. J Capital says it has uncovered that “USBTC is backed by promoters with a history of legal trouble,” and that one of USBTC’s largest shareholders is an undisclosed related party. “One person highly familiar with USBTC told us, ‘without the merger, (USBTC) would have done a structured bankruptcy.’ Why then did HUT pay $745M to acquire this company and its planned payments? Even worse, we estimate a value for USBTC that’s as much as 70% less. Typically, such egregious over-payments occur only when management is being enriched,” the report reads. Further, J Capital says, “We reveal a relationship between USBTC and the SEC-charged Honig group stock promoters. The SEC accused the Honig group of engaging in ‘classic pump and dump’ and ‘fraudulent schemes’… We have linked another group of likely stock promoters, the DesLauriers twins,5 to both of HUT and USBTC’s CEOs. We believe that the DesLauriers may also be behind the promotion scheme. Limited lock-ups and undisclosed related-party shell corps lead us to believe insiders may soon sell shares.” Shares of Hut 8 have dropped almost 6% to $8.77 in Thursday morning trading.