Bitcoin mining firm Hut 8 has revealed a shift in leadership approximately three weeks following accusations made by activist short-selling entity J Capital Research regarding the company’s management practices and financial status.
In an official statement, Hut 8 announced that former CEO Jaime Leverton will be replaced immediately by Asher Genoot, who has been serving as the company’s president since November 2023.
Genoot, a co-founder of Bitcoin miner U.S. Bitcoin Corp (USBTC), transitioned to Hut 8 following the merger between the two entities last year. This merger led to Hut 8’s common stock (TSX) being renamed New Hut (HUT) as the newly formed company became Hut 8 Corp.
The decision for the leadership transition was prompted by the completion of the merger deal, signaling the necessity for a fresh strategic direction. Bill Tai, the Chair of Hut 8’s Board of Directors, expressed confidence in Genoot’s ability to unlock the combined company’s potential with his disciplined approach.
In response to the announcement, the new CEO emphasized his commitment to strengthening operations, driving growth, and delivering sustainable shareholder value. Leverton, who served as Hut 8’s CEO for three years, will be departing the company as per the board’s decision.
Short-Seller Allegations Addressed
Hut 8’s leadership change follows allegations from J Capital Research, labeling HUT as an “obvious pump and dump target” and asserting that the company inherited significant debt from USBTC. The report, issued on January 18, raised concerns about USBTC’s financial health prior to the merger with Hut 8.
J Capital’s report cited instances of loan default and government fines against USBTC, casting doubts on the company’s stability. However, Hut 8 rebuffed these claims, asserting that the report contained inaccuracies and misrepresented data about its business operations.
Despite the allegations, Hut 8 aims to navigate through these challenges under new leadership, focusing on executing its strategic vision and addressing concerns raised by stakeholders.