Bitcoin miner Hut 8 takes dispute with power supplier to court
Quick Take
- Hut 8 said that it filed a statement of claim against its power supplier in the Superior Court of Justice of Ontario, Canada.
- The miner has accused Validus of failing to meet its contractual obligations.
Canadian bitcoin miner Hut 8 is taking a contract dispute with its energy provider to court.
The miner filed a statement of claim in the Superior Court of Justice of Ontario against Validus Power Corp. and its subsidiary, Bay Power Corp., the third-party energy supplier to Hut 8's facility in North Bay, Ontario, according to a Thursday press release.
The company said in October that it would try to settle the dispute through mediation.
Hut 8 claimed that Validus "failed to achieve certain key operational milestones" on schedule, while also demanding more money than what was agreed under the power purchase agreement (PPA). On a Nov. 28 update, it said that Validus cut power to the North Bay site and issued a default notice for failed payments, which Hut 8 denied.
Hut 8 has asked the court to enforce certain provisions of the PPA and grant monetary damages.
The rising cost of electricity — which has squeezed margins across the mining sector— has led to numerous disputes, including one between Celsius' mining arm and hosting provider Core Scientific. Both companies are now in bankruptcy.
Validus Power Corp. did not respond to a request for comment.
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