Hut 8 Mining Corp., a Bitcoin mining company, has responded to a short seller report accusing the company of malpractice. The short seller alleges that Hut 8 has partaken in deceptive accounting practices to mask its rising operational costs. The report also claims that the company is significantly overvalued and that insiders are selling their shares.
Hut 8 has sharply refuted these allegations and stands behind its FY 2020 financial statements which were audited by a reputable firm. They also explained the increased operational costs as necessary investments for its capacity expansion strategy.
“The report by the short seller is full of misinformation attempting to manipulate our stock price,” stated Hut 8 CEO. He also mentioned that the insiders sold shares under predetermined plans and they remain committed to the company.
Hut 8 is currently working with its advisors to review the short seller’s report and provide a comprehensive response. They also reminded shareholders to exercise caution and diligence when basing their investment decisions on anonymous reports.
They concluded by saying they remain committed to offering full transparency to their investors and will provide updates when necessary.
