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


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

In accordance with Riot Platform’s Q1 2023 monetary report revealed on Could 10, Rhodium Enterprises allegedly breached its contract with Riot by failing to pay internet hosting and repair charges related to the usage of Whinstone’s Bitcoin mining services, an entirely owned subsidiary of Riot.

A petition was filed towards Rhodium Enterprises on Could 2 within the District Courtroom of Milam County in Texas, looking for to get well “greater than $26 million,” in addition to reimbursement for authorized charges incurred through the authorized proceedings.

Riot additional requested that “sure internet hosting agreements” are terminated and proposed that it’s exempt from repaying any excellent energy credit to Rhodium.

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

It was acknowledged that estimating “the chance” 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 chance of an unfavorable end result or the magnitude of such an end result, if any.”

Rhodium was served on Could 8, and have a deadline to reply by Could 30, based on the report.

Associated: Complaint filed against Compass Mining for losing BTC mining machines hits snag

In the meantime, Riot stating that it had mined “2,115 Bitcoins” in Q1 2023, a rise of fifty.5% in comparison with Q1 2022.

It was additional famous that Riot did not have any affiliations with the banks which have skilled collapses in current occasions. It famous:

“We didn’t have any banking relationships with Silicon Valley Financial institution, Silvergate Financial institution, or First Republic Financial institution, and presently maintain our money and money equivalents at a number of banking establishments.

Riot anticipates that crypto mining corporations will proceed to expertise challenges in 2023 because of the “vital value decline of Bitcoin” and “different nationwide and international macroeconomic components.”

It was said that Riot’s “relative place” within the business, in addition to its “liquidity and absence of long-term debt,” makes it properly positioned to “profit from such consolidation.”

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