Hut 8 Mining initiated legal proceeding against Validus


Canada's Hut 8 Mining has initiated legal proceedings against Validus Power Corp and its subsidiary Bay Power Corp. In the Supreme Court of Ontario. 

These actions were taken in connection with the ongoing disagreements between Hut 8 and Validus over the non-fulfillment of the last contractual obligations under the electricity purchase agreement. 

Hut 8 requires a monetary settlement and the fulfilment of certain conditions of the agreement signed by both companies in October 2021. According to the contract, Validus was to supply 35 MW to the Hut 8 facility in North Bay, but last November Hut 8 announced that its ally had not met some important operational targets on time. Moreover, Validus demanded payment at a rate higher than that specified in the contract.

In December, available production capacity was reduced to 2.44 EH/s due to a shutdown of production at the North Bay site; further Validus explained this closure by non-payment by Hut 8, which was "categorically denied" by them.

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