Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
- Rhodium allegedly violated its agreement with Riot by failing to pay hosting and service fees.
- The report indicated that Riot mined 2,115 Bitcoins in Q1 2023.
To recover “over $26 million” in alleged unpaid fees for mining facility services, Riot Platforms (formerly known as Riot Blockchain), a cryptocurrency mining operation, has initiated legal proceedings against Texas-based Bitcoin miner Rhodium Enterprises.
According to Riot Platform’s Q1 2023 financial report released on May 10, Rhodium allegedly breached its contract with Riot by not fulfilling payment obligations for hosting and service costs associated with utilizing Whinstone’s Bitcoin mining resources.
Related Posts
Seeking Over $26M in Reimbursement
On May 2, a lawsuit seeking “over $26 million” along with reimbursement for legal costs was filed against Rhodium Enterprises in Milam County Court, Texas.
Furthermore, Riot suggested that it should not be required to repay any outstanding power credits upon the termination of “certain hosting agreements” with Rhodium. It was highlighted that estimating the likelihood of recovering the unpaid fees is currently challenging.
The report states that Rhodium was served on May 8, with a deadline for response set for May 30. Additionally, it noted that Riot had mined “2,115 Bitcoins” in Q1 2023, reflecting a 50.5% increase compared to Q1 2022. It was also emphasized that Riot was not involved in the recent banking failures.
Riot anticipates that cryptocurrency mining companies will face challenges in 2023 due to the “significant decline in Bitcoin prices” and “various national and global macroeconomic factors.” With its “relative position” in the industry, “liquidity,” and “lack of long-term debt,” Riot is reported to be well-positioned to “benefit from such consolidation.”
