Hut 8 Mining (TSX: HUT) continues to have problems with its operations in North Bay, Ontario. The firm this morning indicated that it has requested mediation proceedings with its power provider for the facility following trouble that emerged in early November.
As previously indicated, the company provided a notice of default to Validus Power Corp, its energy provider for the North Bay facility, earlier this month. The default was issued as a result of “breaches of certain obligations,” which are said to consist of operational milestones.
Validus meanwhile has suspended providing power to the facility while delivering an event of default notice of its own for certain payments that Hut failed to make for the delivery of energy. The company for its part denies this, although has previously claimed that Validus is charging for power at a higher rate than previously agreed to.
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Hut 8 is reportedly “exploring alternatives” as a result of the debacle.
The firms North Bay facility currently accounts for 0.84 EH/s of Hut’s installed hash rate capacity, which equates to approximately 27.4% of its overall operating capacity. The facility currently has over 8,800 AISC mining servers installed.
Hut 8 Mining last traded at $1.58 on the TSX.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
