Riot Platforms, a cryptocurrency mining firm, has taken legal action against Rhodium Enterprises, a BTC miner, in an attempt to retrieve more than $26 million in unpaid fees related to mining facilities. The dispute arises from Rhodium’s failure to honor its contractual obligations by neglecting to pay hosting and service fees associated with the use of Whinstone’s Bitcoin mining facilities, which is wholly owned by Riot. The lawsuit was initiated on May 2 and filed in the Milam County Court located in Texas.
Riot Platforms has also requested authorization to terminate specific hosting agreements with Rhodium and be exempt from refunding any outstanding power credits upon the termination. However, the ultimate outcome of the litigation and the probability of recuperating the unpaid fees remain uncertain at this early stage. Despite the legal challenges, Riot Platforms reported a notable achievement of mining 2,115 Bitcoins during Q1 of 2023. Additionally, the company expressed confidence in its industry positioning, liquidity, and ability to confront the challenges encountered by crypto mining enterprises, including the recent significant decline in Bitcoin’s price and other macroeconomic factors.