Hut 8 Sees CEO Change Amid Short-Seller Report and Stock Plunge

Hut 8 (HUT) shares tumbled up to 8% on Wednesday as CEO Jamie Leverton resigned just weeks after the company was slammed with a short-seller claim.

The crypto miner stated that Leverton, who served as CEO for three years, will be followed by the company's president, Asher Genoot, starting immediately. Genoot co-founded U.S. Bitcoin Corp. (USBTC) and was appointed president and director of Hut 8 in November following a merger with USBTC.

"The merger of equals of Hut 8 and US Bitcoin Corp was a transformational moment for both companies," Hut 8 Chairman Bill Tai said in a statement. "Hut 8 is now at a pivotal inflection point, and we believe that Asher is uniquely qualified to accelerate our path to market leadership."

The move comes after short seller JCapital Research issued a report on Jan. 18 claiming the merger was a "pump and dump" waiting to happen. The miner responded a week later, claiming that the study was "a deliberate attempt to spread misinformation about Hut 8, its operations, finances, management practices, and key executives."

Hut 8's stock has plunged more than 50% this year, while the Valkyrie Bitcoin Miners ETF (WGMI), which tracks miners' performance, has lost nearly 39% and bitcoin has gained approximately 2%.

Source: Coindesk