A miner uses an energy company

  • Elena Klimovich
  • 13:12 Jan 27, 2023
  • 421
A miner uses an energy company

Validus Power Corp. has received a lawsuit from bitcoin miner Hut 8. Moreover, the lawsuit also mentions Validus' subsidiary, Bay Power Corp.

The cause of action cites the failure to fulfill the terms of the power purchase agreement. In this regard, BTC-miner insists on the payment of monetary compensation, and the fulfillment of all obligations stipulated by the contract.

The crux of the matter is that Validus committed to supplying 35 MW of electricity to the Ontario facility owned by Hut 8. However, a year later, the miner announced that the facility had not met many of the key metrics required to implement the strategy. Moreover, Hut 8 insists that the power supplier demanded payment at rates that were significantly higher than what was originally contracted.

Based on the miner's report, the capacity used for cryptocurrency mining dropped to 2.44 EH/s due to the shutdown at the Ontario facility. In turn, Validus accused the mining company of not paying for the electricity supplied. These allegations were denied by Hut 8. The lawsuit is being prepared for a court hearing.

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