Canada-based Bitcoin (BTC) miner Hut 8 Mining Corporation has escalated its ongoing fight with its energy provider over one of its mining sites, filing a lawsuit in a Canadian court.
cabin 8 saying on January 26, it filed a statement of claim in 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 Hut 8 alleging that Validus failed to “meet its contractual obligations” for the power purchase agreement (PPA).
In its new lawsuit, Hut 8 is seeking “monetary damages incurred as a result of the dispute” and compliance with certain provisions under the agreement signed by the two companies.
Cabin 8 and Validus started working together in late 2021 with Validus initially providing 35 megawatts (MW) of power to North Bay, but was programmed to provide around 100 MW by the end of 2021.
On November 9, 2022, Cabin 8 issued a notice of breach to Validus alleging that it failed to achieve the milestones by the dates outlined in the PPA and asserting that the company required Hut 8 to pay for energy at a higher price than stipulated in the terms of the agreement.
A to update de Hut 8 later that month revealed that Validus suspended power delivery to its North Bay site. Validus responded with its own default notice alleging that Hut 8 did not pay its energy charges, a claim that Hut 8 denies.
We’re in North Bay today on tour@Hut8Mining3rd mining site in , with@PowerValidus #btc #Canada pic.twitter.com/3BWNQm0Sft
— Hut 8 (@Hut8Mining) October 25, 2021
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.”
Related: The worst days for Bitcoin miners may be over, but some key hurdles remain
Before going offline, the North Bay site had 8,800 crypto mining rigs and a hash rate capacity of 0.84 exahashes per second (EH/s), representing more than a quarter of its total throughput capacity, according to an investor from December 2022. deck.
Cointelegraph reached out to Validus and Hut 8 for comment, but did not receive an immediate response from either firm.
