King Mountain interest expense accounting error
Company: Hut 8
The claim, verbatim
King Mountain Joint Venture had interest expenses that were not properly accounted for, overstating its projected profitability to Hut 8.
Source (primary)
Thompson v. Leverton — Entry #9: FIRST AMENDED COMPLAINT amending 1 Complaint, against Joseph Flinn, Asher Genoot, Alexia Hefti, Michael Ho, Hut 8 Corp., Jamie Leverton, Stanley O'Neal, Rick… (RECAP, court_filing)
View cached copy (2026-09-26)Live source ↗
Quote: “King Mountain Joint Venture had certain interest expenses that were not properly accounted for, making it appear as if King Mountain Joint Venture would be more profitable to Hut 8 than it actually was”
How we checked this
Checked on September 28, 2026. The cited source supports part of this claim, but not all of it.
The complaint states this as an allegation based on a short-seller report. No finding or admission establishes it.
Confirmed in the source:
- The complaint alleges that King Mountain had interest expenses that were not properly accounted for, making it look more profitable to Hut 8 than it was
- A J Capital Research report quoted in the complaint said the accounts showed $665,000 of profit while ignoring about $3.2 million of interest expense
We could not confirm this from the cited source:
- That King Mountain's interest expenses were in fact improperly accounted for (the document only alleges this)
- That its profitability was in fact overstated (the document only alleges this)
That does not mean it is false — only that this source does not establish it, as of the date above. If we find a source that settles it, we will re-check and update this page.
What we did: Read our cached copy of RECAP (https://storage.courtlistener.com/recap/gov.uscourts.nysd.618845/gov.uscourts.nysd.618845.9.0.pdf) in full (109,679 characters, retrieved September 26, 2026) and checked each assertion in the claim against it.
Additional evidence
confirms Thompson v. Leverton — Entry #9: FIRST AMENDED COMPLAINT amending 1 Complaint, against Joseph Flinn, Asher Genoot, Alexia Hefti, Michael Ho, Hut 8 Corp., Jamie Leverton, Stanley O'Neal, Rick…
Quote: “King Mountain Joint Venture had certain interest expenses that were not properly accounted for, making it appear as if King Mountain Joint Venture would be more profitable to Hut 8 than it actually was”