Wednesday, December 6, 2023

Canada-based Bitcoin (BTC) miner Hut 8 Mining Company has ramped up its ongoing struggle with its energy provider for considered one of its mining websites, submitting a lawsuit in a Canadian courtroom.

Hut 8 said on Jan. 26 it filed a Assertion of Declare within the Superior Court docket of Justice of Ontario towards Validus Energy, an power provider for a Hut 8 mining facility in North Bay, Ontario.


The companies have been in an ongoing dispute since early November 2022 as a result of what Hut 8 alleges is a failure by Validus to “meet its contractual obligations” for the facility buy settlement (PPA).

In its new lawsuit, Hut 8 is searching for “financial damages incurred on account of the dispute” and enforcement of sure provisions as per the settlement signed by the 2 firms.

Hut 8 and Validus started working collectively in late 2021 with Validus initially offering 35 megawatts (MW) of energy to North Bay, however was slated to supply round 100 MW by the top of 2021.

A June 2022 picture from the North Bay facility exhibiting a number of ASIC crypto miners. Supply: Hut 8

On Nov. 9, 2022, Hut 8 issued a discover of default to Validus alleging it failed to realize milestones by the dates outlined within the PPA and claimed the agency demanded Hut 8 pay for power that was at the next value than that underneath the phrases of the settlement.

An update from Hut 8 later that month revealed Validus suspended the supply of power to its North Bay web site. Validus fired again with its personal default discover alleging Hut 8 didn’t pay for its energy expenses — a declare Hut 8 denies.

To this date, operations on the web site stay suspended. Hut 8 stated it’s exploring alternate options to mitigate the influence of the dispute together with by way of “natural and inorganic development alternatives.”

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Associated: Bitcoin miners’ worst days could have handed, however a number of key hurdles stay

Earlier than it was taken offline, the North Bay web site had 8,800 crypto mining rigs and a hash charge capability of 0.84 exahashes per second (EH/s), accounting for over one-fourth of its complete manufacturing capability, in line with a December 2022 investor deck.

Cointelegraph contacted Validus and Hut 8 for remark however didn’t obtain a direct response from both agency.

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