Bitcoin miner Hut 8 takes stoush with Ontario power supplier to court

Canada-based Bitcoin (BTC) miner Hut 8 Mining Company has ramped up its ongoing struggle with its energy provider for one in all 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 vitality provider for a Hut 8 mining facility in North Bay, Ontario.

The companies have been in an ongoing dispute since early November 2022 because 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 looking for “financial damages incurred because 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 offer round 100 MW by the tip 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 vitality that was at a better value than that below the phrases of the settlement.

An update from Hut 8 later that month revealed Validus suspended the supply of vitality to its North Bay website. Validus fired again with its personal default discover alleging Hut 8 did not pay for its energy costs — a declare Hut 8 denies.

To this date, operations on the website stay suspended. Hut 8 mentioned it’s exploring options to mitigate the affect of the dispute together with by means of “natural and inorganic progress alternatives.”

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

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

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

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