⚡ Analysts Signal Potential Risks with Hut 8 Mining Corp's Stocks
posted 19 Jan 2024
JCapital Research analysts have issued a warning about the potential for a significant drop in Hut 8 Mining Corp (HUT) shares, citing possible involvement in fraudulent schemes like Pump & Dump. This alert is primarily based on the company's recent acquisition of US Bitcoin (USBTC) and the ensuing merger.
The report specifically highlights concerns around Michael Ho, the new Chief Strategy Officer & Director at Hut 8 Corp, who formerly headed USBTC. Ho is reportedly linked to the Honig Group, a company previously accused of stock market fraud and penalized with hefty fines by the U.S. Securities and Exchange Commission (SEC).
US Bitcoin has also been involved in several dubious decisions. For example, the company once employed a 13-year-old, allegedly related to the Honig Group, for meme-making purposes. Additionally, the company had earlier concealed the identities of its stock promoters (linked to the Honig Group) from regulatory authorities.
The researchers conclude that these numerous "red flags" and the risk of potential fraud could leave investors with shares in a mining business that might not be profitable, even with Bitcoin priced at $60,000. The release of this report led to a 23% drop in the shares of Hut 8.
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