Riot Platforms, a cryptocurrency mining company formerly known as Riot Blockchain, has filed a lawsuit against Rhodium Enterprises, a Texas-based bitcoin mining company. It is trying to collect more than $26 million in allegedly unpaid mining facility fees.
Rhodium Enterprises was the subject of a petition He filed in Milam County, Texas, court on May 2, seeking to collect “more than $26 million” and compensation for any legal bills that may have been spent.
According to Riot Platform’s quarterly financial report for the period ending March 1, 2023, which was released May 11, Rhodium is said to have breached its contract with Riot by failing to pay hosting and service costs associated with Whinstone’s bitcoin mining use, its wholly owned subsidiary. for Riot.
In addition, Riot requested permission to terminate “certain hosting agreements” with Rhodium and proposed that it be excused from paying any outstanding power credits upon discontinuation.
Rhodium was notified May 8 and given until May 30 to respond to the claim. The report also revealed that Riot mined 2,115 bitcoins in the first quarter of 2023, an increase of 50.5% compared to the first quarter of 2022.
Riot is not part of the banking saga
It was confirmed that Riot was not connected to the latest round of bank failures.
“We do not have any banking arrangements with Silicon Valley Bank, Silvergate Bank or First Republic Bank, and all cash and cash equivalents are currently held with a number of other financial institutions.”
Riot report
Riot predicts that cryptocurrency mining companies will continue to experience difficulties in 2023 due to the significant drop in the Bitcoin price and other national and global macroeconomic factors.
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It was noted that Riot’s “relative position” in the industry, combined with its “liquidity and absence of long-term debt”, puts it in a good position to “benefit from this merger”.