Crypto Miner Riot Sues Bitcoin Miner Rhodium for $26 Million
BITmarkets Team
May 14, 2023
Cryptocurrency miner Riot Platforms, formerly known as Riot Blockchain, has sued Texas-based Bitcoin (BTC) miner Rhodium Enterprises for more than $26 million in alleged unpaid mining facility fees.
The Riot Platforms Q1 2023 financial report published on May 10 reveals that Rhodium allegedly breached its contract with Riot for failure to pay hosting and service fees associated with Whinstone’s Bitcoin mining facilities, which is a subsidiary of Riot.
On May 2, A petition was filed against Rhodium Enterprises in the Milam County Court in Texas, which seeks to recover “more than $26 million” and be reimbursed for any legal fees incurred. Moreover, Riot requested permission to terminate “certain hosting agreements” with Rhodium and proposed to be free from repaying any outstanding power credits upon cessation.
According to the quarterly report of Riot, Rhodium Enterprises was served on May 8, with a deadline to respond by May 30. Riot expects that cryptocurrency mining companies will continue to face some windfall in 2023 due to the “significant price decline of Bitcoin” and “other national and global macroeconomic factors.”
Sources:
https://cointelegraph.com/news/btc-miner-rhodium-lawsuit-alleged-26-m-in-unpaid-fees
https://www.thecoinrepublic.com/2023/05/14/rhodium-enterprise-sued-for-26-million-by-riot-platforms/
https://www.sec.gov/ix?doc=/Archives/edgar/data/1167419/000155837023009137/riot-20230331x10q.htm
