Joint Filing Reveals Legal Disagreements Between Hbtpower and Mohawk Over Bitcoin Mining Deal

News | March 6, 2024 By:

On Wednesday, February 21, 2024, Hbtpower Limited and Mohawk Energy filed a joint status report in the ongoing case between the two companies regarding a contract dispute over Bitcoin mining machines.

The case originated in November 2023 when Hbtpower Limited, a bitcoin mining company, filed a lawsuit against Mohawk Energy LLC alleging breach of contract over a licensing agreement signed in May 2022. Under the agreement, Mohawk Energy would provide exclusive use of a facility in Jenkins, Kentucky to Hbtpower for bitcoin mining operations in exchange for monthly rental fees, labor costs, and a share of mining profits.

Hbtpower claims it delivered over $7.7 million worth of Bitcoin mining machines to the Mohawk facility to set up operations. However, the lawsuit states Mohawk failed to make the facility ready for mining by the agreed upon September 2022 deadline. Additionally, Hbtpower paid Mohawk over $12 million in fees and deposits but alleges Mohawk did not use the funds properly or provide invoices accounting for expenditures.

In their filing, the companies outlined their different perspectives on the case. Hbtpower maintains the contract terms required Mohawk to ready the facility before further payments were due. Mohawk claims numerous verbal modifications were made to the agreement by Hbtpower. It also cites delays from supply chain issues and Hbtpower’s sale to new ownership.

By July 2023, Mohawk stated the facility was ready for mining but the new Hbtpower owners denied them access. Mohawk then sold some Bitcoin machines, alleging unpaid rental fees. However, Hbtpower argues this violated the contract terms.

As the case progresses, the joint status report provides insight into ongoing discovery disputes between the parties. Hbtpower seeks limited discovery relating to preliminary injunctive relief, while Mohawk wants broader discovery on all claims. The companies also disagree on issues like amending pleadings, dispositive motions, and whether arbitration should proceed in light of the ongoing court case.

The filing demonstrates ongoing legal wrangling as the two sides present differing views of the contractual relationship and events that led to the current dispute over the Bitcoin mining machines.

Please contact BlockTribune for access to a copy of this filing.