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Hut 8 received court approval to purchase 4 power plants

  • Hut 8, a Bitcoin mining company, is set to acquire four power plants in Ontario.
  • The purchase is anticipated to bring an end to the dispute between Hut 8 and Validus Power.

In a significant development, an Ontario court has granted permission to Hut 8, a Canadian mining firm, to acquire four power plants. This transaction is expected to serve as the final resolution to the conflict between Hut 8 and entities affiliated with Validus Power Corporation (VPC).

As per court documents, Hut 8’s newly-established Ontario subsidiary, BidCo, will take ownership of specific VPC assets which include:

  • A 40 MW facility in Kapuskasing.
  • A 110 MW power plant in Kingston.
  • A 120 MW facility in Iroquois Falls.
  • A 40 MW power plant and mining farm in North Bay.

The resolution also outlines an agreement between BidCo and Macquarie Equipment Finance for financing purposes. Macquarie is set to hold a minority stake of 20% in BidCo, while Hut 8 will retain the remaining 80%. The transaction is projected to be finalized by February 15, 2024, according to a press release.

In September 2023, Hut 8 revealed that its Bitcoin reserves had risen to 9,366 BTC. Furthermore, the company disclosed plans for the construction of a new facility in Texas, with an anticipated mining farm capacity of 215 MW.