• Hut 8’s bitcoin mining operation in North Bay, Ontario has been halted after a disagreement with its Canadian-based energy provider, Validus Power.
• Validus has issued a notice of default to Hut 8 for „failing to hit certain operational milestones“ and has demanded payments for delivery of energy higher than those negotiated under the terms of the PPA.
• Hut 8 is continuing to explore alternatives to mitigate the impact of the dispute with the third-party energy supplier to the site, including through organic and inorganic growth opportunities.
Hut 8’s bitcoin mining operation in North Bay, Ontario has been brought to a standstill due to a disagreement between the company and its Canadian-based energy provider, Validus Power. The situation began in November 2022 when Hut 8 issued a notice of default to Validus for „failing to hit certain operational milestones.“ Following this, Validus stopped supplying power to the facility and delivered its own default notice for payments that it claimed Hut 8 had failed to make. In addition, the energy supplier demanded payments for delivery of energy that are higher than those negotiated under the terms of the PPA.
The dispute has had an adverse effect on Hut 8’s operations, as power costs can have a significant impact on the success of bitcoin mining firms. To counteract the disruption caused by the disagreement, the company is currently exploring alternatives to mitigate the impact of the dispute with the energy supplier. This includes organic and inorganic growth opportunities.
Hut 8 is confident that it will be able to resolve the issues and restart operations as soon as possible, whether that be through a resolution involving Validus or a potential alternative power supplier. The company’s Q3 report stated that it is „continuing to explore alternatives to mitigate the impact of the dispute with the third-party energy supplier to the site, including through organic and inorganic growth opportunities.“ Hut 8 has expressed its commitment to finding a solution and resuming operations, and they are confident that they will be able to do so in the near future.