Riot Platforms (RIOT), the renowned Bitcoin mining firm previously known as Riot Blockchain, has taken legal action against Rhodium Enterprises, a digital asset technology company based in Texas. The lawsuit claims that Rhodium Enterprises intentionally miscalculated the amount owed to RIOT, resulting in financial losses for the mining company. The matter is being handled through legal channels professionally.
Riot Platforms’ Q1 2023 financial report, released on May 10, revealed that Rhodium Enterprises has defaulted on paying $26 million for hosting and service fees related to Bitcoin mining facilities. Despite utilizing the mining facilities of Riot’s subsidiary, Whinstone, from 2021 to the first quarter of 2023, Rhodium Enterprises has failed to fulfill its financial obligations.
On May 2, Rhodium Enterprises was served with a petition from RIOT in the District Court of Milam County, Texas. The petition claims that Rhodium Enterprises is indebted to RIOT for a sum exceeding $26 million. Furthermore, RIOT has requested reimbursement for legal fees to facilitate the legal proceedings. The matter is being handled with the utmost professionalism and diligence.
The quarterly report provided a concise overview of the petition submitted, affirming the termination of “specific hosting agreements” with Rhodium. The report conveyed:
In the amended petition, Whinstone asserts breach of contract claims for Rhodium’s failure to pay certain hosting and service fees under certain hosting agreements and seeks a declaration that certain hosting agreements with Rhodium are terminated and that no power credits are owed to Rhodium under any agreement.
According to Whinstone, despite the platform’s diligent efforts to obtain the payment from Rhodium in May 2022 and April 2023, the latter refused to comply, ultimately leaving Riot with no choice but to pursue legal action.
