By Adriano Marchese
Hut 8 Mining Corp. said Monday that it has requested mediation proceedings with one of its third-party suppliers of energy for suspending delivery of energy to the company's operations in Ontario.
Earlier in November, the Canadian cryptocurrency mining company delivered a notice of event of default to Vladius Power Corp. for what it said were breaches of certain obligations it had with Hut 8 under a power-purchase agreement.
Subsequently, Vladius suspended delivery of energy to Hut 8's mining operations in North Bay, claiming that Hut 8 failed to make payments.
Hut 8 said that it now intends to proceed to mediation, a route stipulated as an option in the agreement between the companies.
To mitigate any effects of the dispute, Hut 8 said it is exploring alternatives, including through organic and inorganic growth opportunities.
The company said that it continues to monitor the situation and that it will provide updates on the status of the mediation process as well as the suspension of mining activities at its North Bay site.
Write to Adriano Marchese at firstname.lastname@example.org
(END) Dow Jones Newswires