BTC miner Rhodium faces lawsuit over an alleged $26M in unpaid fees: Report

Crypto mining steadfast Riot Platforms – formerly Riot Blockchain – is seeking to retrieve “more than $26 million” successful alleged unpaid fees from Texas-based Bitcoin (BTC) miner Rhodian enterprises, according to its Q1 2023 report.

Published connected May 10, Riot's report stated that Whinstone – a wholly owned subsidiary of Riot – has filed a petition against Rhodium Enterprises connected May 3, alleging a breach of declaration aft failing to wage “certain hosting and work fees nether agreements."

Riot seeks to retrieve “more than $26 million,” positive ineligible fees and different expenses incurred during the ineligible proceedings, arsenic outlined successful the report.

It was further requested that “certain hosting agreements” with Rhodium are terminated and “that nary powerfulness credits are owed to Rhodium.”

Extract of Riot Platforms quarterly study for the play ended March 31. Source: SEC

Although the disclosure of unpaid fees was stated, Riot provided transparency to stakeholders by acknowledging that “the likelihood” of recovering the funds astatine this signifier is uncertain. It noted:

“Because this litigation is inactive astatine this aboriginal stage, we cannot reasonably estimation the likelihood of an unfavorable result oregon the magnitude of specified an outcome, if any.”

It was reported that Rhodium was served connected May 8, and person until May 30 to respond.

Related: Complaint filed against Compass Mining for losing BTC mining machines hits snag

The study besides emphasized Riot’s maturation successful mining operations, stating that it had mined “2,115 Bitcoins” (BTC), representing an summation of 50.5% from the fig of Bitcoins mined during the archetypal 4th of 2022.

Furthermore, stakeholders were provided reassurance successful the study that Riot does not have immoderate affiliations with the banks that person experienced collapses successful caller times. It noted:

“We did not person immoderate banking relationships with Silicon Valley Bank, Silvergate Bank, oregon First Republic Bank, and presently clasp our currency and currency equivalents astatine aggregate banking institutions.

Riot anticipates that Bitcoin mining companies volition proceed to acquisition important challenges owed to the important terms diminution of Bitcoin and “other nationalist and planetary macroeconomic factors,” arsenic the manufacture saw successful 2022.

It was stated that fixed Riot’s "relative position" successful the industry, “liquidity and lack of semipermanent debt,” it is positioned to “benefit from specified consolidation.”

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