Riot Platforms Goes to Court Against Rhodium Enterprises over Mining Fees
Riot Platforms, formerly known as Riot Blockchain, has initiated legal proceedings against Rhodium Enterprises, a Bitcoin miner based in Texas, in an effort to recover an alleged sum exceeding $26 million in unpaid fees related to mining facilities.
Riot Platform’s financial report for Q1 2023, published on May 10, states that Rhodium violated their agreement by neglecting to pay for the use of Whinstone’s Bitcoin mining facilities, a subsidiary fully owned by Riot.
The petition was filed in the Milam County Court in Texas on May 2, seeking reimbursement for the unpaid amount and associated legal expenses. Riot also sought permission to terminate certain hosting agreements with Rhodium and proposed an exemption from repaying outstanding power credits upon cessation.
Given the early stage of the litigation, it is challenging to estimate the probability or magnitude of an unfavorable outcome. Rhodium received the service of the legal documents on May 8 and is required to respond by May 30.
The financial report further reveals that Riot successfully mined 2,115 Bitcoins in Q1 2023, representing a 50.5% increase compared to the same period in 2022.
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Additionally, the report emphasizes that Riot did not have any banking relationships with Silicon Valley Bank, Silvergate Bank, or First Republic Bank. The company currently holds its cash and cash equivalents in multiple banking institutions.
Riot anticipates ongoing difficulties for crypto mining firms in 2023 due to the substantial decline in Bitcoin prices and various national and global macroeconomic factors.
However, the report highlights Riot’s favorable market position, liquidity, and absence of long-term debt, which positions the company well to capitalize on industry consolidation.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
