Canada-based Bitcoin (BTC) miner Hut 8 Mining Corporation has ramped up its ongoing fight with its power supplier for one of its mining sites, filing a lawsuit in a Canadian court.
Hut 8 said on Jan. 26 that it had filed a Statement of Claim in the Superior Court of Justice of Ontario against Validus Power, an energy supplier for a Hut 8 mining facility in North Bay, Ontario.
The firms have been in an ongoing dispute since early November due to what Hut 8 alleges is a failure by Validus to “meet its contractual obligations” for the power purchase agreement.
In its new lawsuit, Hut 8 is seeking “monetary damages incurred as a result of the dispute” and enforcement of certain provisions as per the agreement signed by the two companies.
Hut 8 and Validus started working together in late 2021, with Validus initially set to provide 35 megawatts (MW) of power to North Bay, a figure set to increase to around 100 MW by the end of 2021. The site was operating at 20 MW by July 2022 according to Hut 8.
On Nov. 9, Hut 8 issued a notice of default to Validus, alleging it failed to achieve milestones by the dates outlined in the power purchase agreement and claiming that the firm demanded Hut 8 pay for energy at a higher price than the agreement called for.
An update from Hut 8 later that month revealed Validus suspended the delivery of energy to its North Bay site. Validus fired back with its own default notice alleging that Hut 8 failed to pay for its power charges, a claim Hut 8 denies.
To this 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.”
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Before it was taken offline, the North Bay site had 8,800 crypto mining rigs and a hash rate capacity of 0.84 exahashes per second (EH/s), accounting for over one-fourth of its total production capacity, according to a December investor deck.
Cointelegraph contacted Validus for comment but did not receive an immediate response.