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

Summary:
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

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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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