- Rhodium reportedly broke its contract with Riot by not paying hosting and service costs.
- The report stated that Riot had mined 2,115 Bitcoins in Q1 2023.
To recoup “more than $26 million” in claimed unpaid mining facility fees, Riot Platforms (previously Riot Blockchain), a cryptocurrency mining platform, has filed a lawsuit against Texas-based Bitcoin miner Rhodium Enterprises.
Rhodium reportedly broke its contract with Riot by not paying hosting and service costs related to utilizing Whinstone’s Bitcoin mining capabilities, according to Riot Platform’s Q1 2023 financial report issued on May 10.
Seeking Over $26M in Reimbursement
On May 2, an action seeking “more than $26 million” and reimbursement of legal expenses was launched against Rhodium Enterprises in Texas’s Milam County Court.
In addition, Riot recommended not having to pay back any outstanding power credits upon termination of “certain hosting agreements” with Rhodium. It was noted that it is difficult, at this time, to estimate the chances of retrieving the outstanding fees.
The report claims that Rhodium was served on May 8, with a response due date of May 30. In addition, the report said that Riot had mined “2,115 Bitcoins” in Q1 2023, which is a growth of 50.5% compared to Q1 2022. It was also stressed that Riot had nothing to do with the recent bank failures.
Mining firms for cryptocurrencies will have difficulties in 2023, according to Riot, because of the “significant price decline of Bitcoin” and “other national and global macroeconomic factors.” With its “relative position” in the business, “liquidity,” and “absence of long-term debt,” Riot is said to be in a good position to “benefit from such consolidation.”