Cryptocurrency

BTC miner Rhodium faces lawsuit over alleged $26M in unpaid charges: Report

May 15, 2023
1 minute read

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Crypto mining agency Riot Platforms — previously Riot Blockchain — has taken authorized motion towards Texas-based Bitcoin (BTC) miner Rhodium Enterprises to recuperate “greater than $26 million” in alleged unpaid mining facility charges.

According to Riot Platform’s Q1 2023 monetary report printed on Could 10, Rhodium allegedly breached its contract with Riot by failing to pay internet hosting and repair charges related to utilizing Whinstone’s Bitcoin mining services, a completely owned subsidiary of Riot.

A petition was filed towards Rhodium Enterprises on Could 2 within the Milam County Courtroom in Texas, in search of to recuperate “greater than $26 million” and be reimbursed for any authorized charges incurred.

Moreover, Riot requested permission to terminate “sure internet hosting agreements” with Rhodium and proposed to be exempt from repaying any excellent energy credit upon cessation.

Extract of Riot Platforms quarterly report for the interval ended March 31. Supply: SEC

It was acknowledged that estimating the probability of recovering the unpaid charges at this stage is unsure. It famous:

“As a result of this litigation remains to be at this early stage, we can not moderately estimate the probability of an unfavorable end result or the magnitude of such an end result, if any.”

Rhodium was served on Could 8, with a deadline to reply by Could 30, in accordance with the report.

Associated: Criticism filed towards Compass Mining for shedding BTC mining machines hits snag

In the meantime, the report additionally revealed that Riot had mined “2,115 Bitcoins” in Q1 2023, a rise of fifty.5% over Q1 2022.

It was additional famous that Riot did not have any affiliations with recent bank collapses:

“We did not have any banking relationships with Silicon Valley Bank, Silvergate Bank, or First Republic Bank, and currently hold our cash and cash equivalents at multiple banking institutions.“

Riot anticipates that crypto mining companies will continue to experience challenges in 2023 due to the “significant price decline of Bitcoin” and “other national and global macroeconomic factors.“

It was stated that Riot’s “relative position” in the industry, as well as its “liquidity and absence of long-term debt,” makes it well-positioned to “benefit from such consolidation.”

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