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North Bay bitcoin operation dispute heads to court

Hut 8 Mining files lawsuit against Validus Power over power supply contract
North Bay data centre (Validus Power photo)

Bitcoin maker Hut 8 Mining has escalated its dispute with Validus Power, the energy supplier to its North Bay operation.

Hut 8 has filed a lawsuit in the Superior Court of Justice of Ontario claiming Validus failed “to meet its contractual obligations in the power purchase agreement” between the two parties. 

Hut 8 is seeking the enforcement of certain provisions in the agreement, plus monetary damages.

The two have been at odds since November over their power contract.

Hut 8 and Validus had teamed up in 2021 to bring a closed former Atlantic Power station, north of the city, back to life. The site was generating 20 megawatts of power last summer with plans to ramp up to 100 megawatts, 

Hut 8 later claimed Validus had stopped providing power to the North Bay and had delivered a notice of default. Validus responded with a notice of default of its own, claiming that Hut 8 failed to make certain payments related to the supply of power, an allegation Hut 8 denies.

“As the matter is now before the court, Hut 8 does not intend to make additional comments on this subject unless otherwise determined to be appropriate,” Hut 8 said in a recent news release.