Author: Jayne

Bitcoin mining company Hut 8 Corp. has filed a motion in a New York federal court to dismiss a class-action lawsuit initiated by its shareholders. The lawsuit, which originated from claims made by short-seller J Capital Research, accuses Hut 8 of overpaying for a company plagued by operational difficulties.

In a December 2 filing, Hut 8 asserted that the report was part of “a calculated effort by J Capital Research to devalue Hut 8’s stock for its own financial benefit.” The company further argued that “This case stems from a short-seller’s attempt to profit at the expense of ordinary shareholders.”

Hut 8 referred to such tactics as “short-and-distort” strategies, explaining that these schemes often lead to shareholder lawsuits that amplify the negative claims made by the short-seller. “These cases are commonly dismissed,” the company stated, requesting that the court do the same in this case.

In January, J Capital Research released a report alleging that Hut 8 overstated the profitability of its acquisition of US Bitcoin Corp. (USBTC), failed to disclose operational issues at a Texas facility, and possibly concealed information about ownership stakes.

Following the report’s publication, Hut 8’s stock price dropped by 23%, triggering multiple shareholder lawsuits in March. The plaintiffs, including individuals who suffered financial losses, argued that all shareholders who purchased Hut 8 shares during the period in question were entitled to compensation.

Hut 8 responded by noting that its stock price has since recovered, increasing by about 300% since the report was released. The company also highlighted that many of its public statements were safeguarded by “safe harbor provisions,” and that USBTC’s operational risks were previously disclosed.

USBTC, which held a 50% stake in a joint venture Bitcoin mining operation in Texas, merged with Hut 8 in November 2023.

Hut 8 maintained that the lawsuit failed to prove that its statements were false when made or that shareholders suffered actual harm. The company also rejected any direct connection between the alleged misstatements and the subsequent stock price drop.

In conclusion, Hut 8 urged the court to dismiss the case entirely, “with prejudice,” asserting that there were no valid grounds for the lawsuit to proceed.

Hut 8 shares (HUT) closed at $25.06 on December 3, marking a 3.6% decrease, though the stock gained 0.5% in after-hours trading, according to Google Finance. Year-to-date, Hut 8 shares have surged nearly 99%, with a 296% increase from a January low of $6.33.

Mpeppe, a decentralized finance (DeFi) gambling platform, has initiated a claim portal allowing investors to recover 25% of the tokens owed to them. Despite the release, many users have expressed frustration over the inability to trade the tokens, as they claim the asset lacks liquidity.

According to reports from November 26, the blockchain casino project has opened up a portal where users can access a portion of their tokens. However, concerns have arisen as investors are unable to trade the tokens due to liquidity problems, leading some to question the token’s value.

In August, the project was criticized by some investors who alleged that Mpeppe had conducted a fake presale by accepting cryptocurrency payments without issuing the corresponding tokens. Blockchain data at the time revealed that all tokens were held in a single address and remained untouched.

The claim portal asks users to link their wallets but does not request the crypto address where tokens could be sent. Instead, it collects personal information such as phone numbers and email addresses.

On November 26, two investors who wished to stay anonymous told Cointelegraph about their experiences. They reported being able to claim 25% of the owed tokens, though the remaining tokens were still not delivered.

One investor showed a screenshot of the app, which mentioned that more tokens would be available on December 25. Blockchain data confirms that Mpeppe is utilizing a standard airdrop contract for token distribution, with over 700 users successfully claiming their share.

While some users see this as progress, one investor highlighted that the token cannot be traded on platforms like Uniswap. Attempts to swap Mpeppe for ETH or USDC resulted in error messages indicating no liquidity.

The investor, who had invested $1,600, stated, “The coins are not tradable, and there’s no value on Uniswap. I was told there would be a release on BitSwap, but that hasn’t happened.”

On October 30, Mpeppe announced the launch of a Telegram gaming platform and claimed that it was preparing to debut an online casino where users can place bets with the Mpeppe token. Furthermore, the project revealed plans to release a mobile app available on both Google Play and Apple’s App Store.

MicroStrategy’s Michael Saylor recently presented a bold strategy to Microsoft, proposing that the tech giant could add up to $5 trillion to its market cap by making significant investments in Bitcoin. Saylor’s pitch emphasized that Microsoft could secure immense value by embracing the cryptocurrency.

In a rapid and engaging three-minute presentation with 44 slides, Saylor encouraged Microsoft’s board of directors to consider Bitcoin as the next major technological wave. He proposed that the company shift its financial resources—such as cash flows, dividends, stock buybacks, and debt—into Bitcoin, stating, “Microsoft can’t afford to miss the next technology wave, and Bitcoin is that wave.”

According to Saylor, adopting this strategy could potentially add $584 per share to Microsoft’s stock price over the next decade, assuming Bitcoin’s value climbs to $1.7 million by 2034. Additionally, he predicted that a full commitment to Bitcoin could increase Microsoft’s overall enterprise value by $4.9 trillion.

Microsoft, valued at $3.18 trillion, is currently the third-largest company globally, following Apple and Nvidia. Bitcoin’s remarkable 120% surge in 2024, pushing its value close to $100,000 per Bitcoin, has reinforced Saylor’s belief in the cryptocurrency’s long-term potential.

Since 2020, MicroStrategy, led by Saylor, has become a major Bitcoin investor, accumulating 386,700 BTC for $21.9 billion. The company now estimates its Bitcoin holdings are worth approximately $37.6 billion, and its stock price has experienced a remarkable increase of over 465% this year.

Saylor pointed out the growing political and institutional support for Bitcoin, referencing endorsements from major Wall Street firms and favorable statements from incoming President Donald Trump. He argued that Bitcoin offers a more compelling investment alternative than traditional assets, explaining, “It makes more sense to buy Bitcoin than to buy back your own stock or hold bonds.”

Saylor urged Microsoft to adopt Bitcoin as a strategic asset, saying, “It’s time for Microsoft to evaluate its Bitcoin options and do the right thing for the world by adopting Bitcoin.” He reiterated that Microsoft has a unique opportunity to make a world-changing decision by incorporating Bitcoin into its financial strategy.

This strategy highlights Saylor’s ongoing advocacy for Bitcoin, positioning it as a transformative asset that could drive significant corporate growth. However, whether Microsoft will take action on his advice remains uncertain and will likely be a topic of interest for the tech industry in the coming months.

While Saylor’s vision for Bitcoin continues to gain momentum, especially with growing institutional and political support, it is still unclear whether Microsoft will act on his ambitious recommendations. The decision could redefine the company’s future, but only time will tell how they respond.