Bitcoin (BTC) mining company Canada-based Hut 8 Mining Corporation has stepped up its fight against the power 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 with the Ontario Superior Court of Justice against Validus Power, a power provider for a Hut 8 mining facility in North Bay, Ontario.
The companies have been in an ongoing dispute since early November 2022 over what Hut 8 alleges that it is a breach by Validus of “its contractual obligations” for 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 and Validus initially provided 35 megawatts (MW) of power to North Bay, but was provided that will provide about 100 MW by the end of 2021.
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 asserting that the company required Hut 8 to pay for energy at a higher price than established in the terms of 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 power, which Hut 8 denies.
We’re in North Bay today touring@Hut8Mining‘s 3rd mining site, with@PowerValidus #btc #Canada pic.twitter.com/3BWNQm0Sft
—Hut 8 (@Hut8Mining) October 25, 2021
Today we are in the North Bay touring @Hut8Mining’s 3rd mining site, with @PowerValidus #btc #canada
To date, operations at the site remain suspended. Hut 8 said it is exploring alternatives to mitigate the impact of the dispute, including through “organic and inorganic growth opportunities.”
Before going offline, the North Bay site had 8,800 cryptocurrency mining rigs and a hash rate capacity of 0.84 exahashes per second (EH/s), which represented more than a quarter of its total throughput capacity, according to a December 2022 investor cover.
Cointelegraph reached out to Validus and Hut 8 for comment, but did not receive an immediate response from either firm.
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