Hut 8’s bitcoin mining operation in North Bay, Ontario has been ground to a halt after a series of disagreements with its Canada-based energy provider, Validus Power.
Previously, Hut 8 notified the public of issues with Validus in November 2022, as the firm reported in its third-quarter operations update that it had issued a notice of non-compliance to Validus for “failing to reach certain operational milestones.” Mining at the installation site was completely stopped two weeks after this, when Validus stopped powering the facility while serving its own notice of default which it claimed Hut 8 had failed to serve.
The mining company’s third quarter report also stated that “Validus has also required the Company to make payments for power delivery that are higher than those negotiated under the terms of the PPA.”
Fluctuating power costs can have a big impact on bitcoin mining operations, and favorable power purchase agreements are an integral part of a sustainable business. According to his most recent december updateThe company “continues to explore alternatives to mitigate the impact of the dispute with the site’s third-party power provider, including through organic and inorganic growth opportunities.”
Hut 8 has indicated that it intends to resolve the issues and restart operations as soon as possible, either through a resolution involving Validus or, as the company indicated, a potential alternative energy provider.
