Riot Platforms, a cryptocurrency mining company formerly known as Riot Blockchain, has filed a lawsuit against Texas-based bitcoin miner Rhodium Enterprises. He is trying to recover more than $26 million in allegedly unpaid mining facility fees.
Rhodium Enterprises petition It was filed in Milam County, Texas, court on May 2, seeking recovery of “more than $26 million” and compensation for legal costs that may have been incurred.
According to Riot Platform’s quarterly financial report through March 1, 2023, released on May 11, Rhodium will not pay hosting and service costs associated with Winston’s use of Bitcoin mining, and Riot Platform allegedly in breach of contract. The facility is a wholly owned subsidiary of Riot.
Additionally, Riot sought permission to terminate “certain hosting agreements” with Rhodium, offering to be excused from repaying outstanding power credits upon termination.
Rhodium was notified on May 8 and given May 30 to respond to the complaint. The report also reveals that Riot mined 2,115 bitcoins in Q1 2023, a 50.5% increase compared to Q1 2022.
Riots aren’t about banks
It was emphasized that the riots were unrelated to the recent series of bank failures.
“We do not have any banking affiliation with Silicon Valley Bank, Silvergate Bank, or First Republic Bank, and our cash and cash equivalents are currently held with many other financial institutions.”
riot report
Riot predicts that cryptocurrency mining companies will continue to face challenges in 2023 due to a significant price drop in Bitcoin and other national and global macroeconomic factors.
Riot’s “relative standing” in the industry, along with its “lack of liquidity and long-term debt,” put it in a favorable position to “benefit from such integration,” it said.