Texas-based crypto mining company Riot Platforms, formerly Riot Blockchain, has taken legal action against Bitcoin (BTC) miner, Rhodium Enterprises, in an effort to recover "more than $26 million" in alleged unpaid mining facility fees.
Based on Q1 2023 financial data from Riot Platform report published on May 10, Rhodium Enterprises allegedly breached its contract with Riot by failing to pay hosting and service fees associated with the use of Whinstone's Bitcoin mining facilities, a wholly owned subsidiary of Riot.
A petition was filed against Rhodium Enterprises in the Milam County District Court in Texas on May 2, seeking to recover โmore than $26 millionโ as well as reimbursement for legal fees incurred during the court proceedings.
Riot further requested that "certain hosting agreements" be terminated and proposed that it be exempt from paying any outstanding energy credits to Rhodium.
It was acknowledged that estimating "the probability" of recovering unpaid fees at this stage is uncertain. He pointed:
"Because this litigation is still in this early stage, we cannot reasonably estimate the likelihood of an unfavorable outcome or the magnitude of such an outcome, if any."
Rhodium submitted on May 8 and has a deadline of May 30 to respond, according to the report.
Related: The complaint filed against Compass Mining for the loss of BTC mining machines has a drawback
Meanwhile, Riot claims it had mined "2,115 Bitcoins" in Q1 2023, an increase of 50.5% compared to Q1 2022.
It was further noted that Riot did not have no affiliation with banks that have experienced collapses of late. He pointed:
โWe had no banking relationship with Silicon Valley Bank, Silvergate Bank or First Republic Bank, and we 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 decline in the price of Bitcoin" and "other domestic and global macroeconomic factors."
It was claimed that Riot's "relative position" in the industry, as well as its "liquidity and lack of long-term debt", position it well to "benefit from such consolidation".
Magazine: 3AC Cooks Up a Storm, Bitcoin Miner Surges 360%, Bruce Lee NFT Dips: Asia Express
Post navigation
