Riot Platforms (formerly Riot Blockchain), a cryptocurrency mining platform, has launched a lawsuit against Texas-based Bitcoin miner Rhodium Enterprises to recover “more than $26 million” in allegedly unpaid mining facility fees.
According to Riot Platform’s Q1 2023 financial report released on May 10, Rhodium allegedly breached its contract with Riot by failing to cover hosting and service charges linked to utilizing Whinstone’s Bitcoin mining capabilities (a fully owned subsidiary of Riot).
Rhodium Enterprises was sued in Texas’ Milam County Court on May 2 for “more than $26 million” in addition to compensation for attorneys’ fees.
Riot further advised against being required to repay any unused power credits following the expiration of “certain hosting agreements” with Rhodium. The chance of retrieving the outstanding fees was said to be tough to determine at this time.
According to the article, Rhodium received notice on May 8 with a May 30 response deadline. The report also stated that Riot mined “2,115 Bitcoins” in Q1 2023, an increase of 50.5% over Q1 2022. Additionally, it was emphasized that Riot was unrelated to the most recent bank collapses.
According to Riot, the “significant price decline of Bitcoin” and “other national and global macroeconomic factors” would make it impossible for mining companies to operate in 2023. As a result of its “relative position” in the industry, “liquidity,” and “absence of long-term debt,” Riot is reportedly in a favorable position to “benefit from such consolidation.”
Riot is a Bitcoin mining startup that is bolstering the Bitcoin network by quickly growing large-scale mining in the US. By boosting our infrastructure’s capacity and hash rate, we are concentrating on growing our business. Riot aims to be the pioneer of the future of Bitcoin mining, which it believes will benefit from American operations.
Rhodium Enterprises is a large-scale provider of digital asset technologies. The business offers a platform for Bitcoin mining operations that include an integrated infrastructure. Rhodium Enterprises serves customers throughout the United States.