Friday, March 31, 2023

Bitcoin mining company Hut 8 takes dispute with Ontario energy provider to court

bitcoin (btc) mining company Canada-based Hut 8 Mining Corporation has stepped up its fight against the electricity supplier of one of its mining facilities by filing a lawsuit in a Canadian court.

Hut 8 said on January 26 that it filed a statement of claim against Validus Power with the Ontario Superior Court of Justice, An electricity provider for the Hut 8 mining facility in North Bay, Ontario.

What are the companies in dispute about since the beginning of November 2022 Hut 8 alleges that this is a breach by Validus of “its contractual obligations” to the power purchase agreement (PPA).

In his new lawsuit, Hut 8 claims “monetary damages as a result of the dispute” and the application of certain provisions of the agreement signed by the two companies.

Hut 8 and Validus began working together in late 2021 with Validus initially providing 35 megawatts (MW) of power to North Bay, but Estimate Which will provide around 100 MW by the end of 2021.

Bitcoin Mining Company Hut 8 Takes Dispute With Ontario Energy Provider To Court
A June 2022 photo of the North Bay facility showing several ASIC cryptocurrency miners. Font: Hut 8

On November 9, 2022, Hut 8 issued a notice of non-compliance to Validus, alleging that it had not reached milestones by the dates set out in the PPA and claiming that the company had to pay more than the established price. Hut 8 is needed for energy at a cost. With reference to the agreement.

Later that month, Hut 8 informed Validus that it had suspended power to its North Bay facility. Validus responded with its own default notice, claiming that Hut 8 had not paid for the electricity, which Hut 8 denies.

To this day, operations at the site remain suspended. Hut 8 said it is exploring options to reduce the impact of the dispute, including “organic and inorganic growth opportunities”.

Prior to going offline, the North Bay site had 8,800 cryptocurrency mining rigs and a hash rate capacity of 0.84 exahash per second (EH/s), representing more than a quarter of its total throughput capacity. As per December 2022 Investors Cover.

Cointelegraph reached out to Validus and Hut 8 for comment, but did not receive an immediate response from either firm.

the explanation: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information presented here should not be construed as financial advice or investment recommendation. All investments and commercial dealings involve risk and it is the responsibility of each individual to conduct appropriate research before making any investment decision.

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