Summary

• US Bitcoin, a bitcoin mining company that was operating a facility in the City of Niagara Falls, has reached a tentative agreement with the city to restart operations.
• Under the agreement, US Bitcoin must comply with noise reduction and permit application standards and reimburse the city for attorney fees and costs.
• The agreement still needs to be approved by the Niagara Falls City Council.

Background

US Bitcoin Corp., a bitcoin mining company which had been operating a mining facility in the City of Niagara Falls, recently agreed to merge with Hut 8, putting both companies under the umbrella of Hut 8 Corp. In March, however, operations were halted by a state supreme court judge who found that US Bitcoin was in contempt of another court order.

Agreement Terms

In order to begin operations again, US Bitcoin would need to comply with certain measures. These include limiting noise production from their facility to no more than 65 decibels and submitting completed applications for all permits needed to comply with the city’s new high energy usage overlay district. Additionally, they would be required to pay an upfront non-refundable fee of $50,000 upon execution of the agreement as well as a compliance fee of $100,000 within 30 days. The company must also reimburse the city for $180,000 worth of attorney fees and costs tied to its enforcement action against them.

Approval Process

The agreement will need approval from the Niagara Falls City Council before US Bitcoin can restart operations at their facility. Once approved, US Bitcoin must adhere to all terms stated in the agreement or else face legal consequences.