Court says Bitcoin mining host can’t block tenant access to its rigs

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A Delaware tribunal has granted a impermanent reprieve to a Pennsylvanian Bitcoin mining steadfast presently successful a outgo quality with its hosting institution — barring the hosting supplier from blocking entree and different commandeering the miner’s 21,000 rigs astatine the property. 

Vice Chancellor Morgan Zurn granted a impermanent restraining bid connected March 12, requested by Bitcoin miner Consensus Colocation and systems proprietor Stone Ridge Ventures against Mawson Hosting, which provides hosting and colocation services for Bitcoin miners.

The firms person been successful disagreement implicit alleged unpaid fees, the presumption of their statement and Consensus’ program to relocate, allegedly starring to Mawson blocking the miner’s unit from accessing the site.  

The firms person besides alleged Mawson has been operating the rigs since Feb. 28 for their ain summation aft preventing Consensus from entering the premises.

Mawson, however, claims they are allowed to usage the rigs nether the presumption of its statement with Consensus, and they person the close of archetypal refusal for its relocation plans.

The Bitcoin miner has been seeking injunctive alleviation to regain power of their instrumentality and forestall Mawson from utilizing them. 

As portion of the March 12 order, Mawson is barred from utilizing the hashrate from the miners and volition nary longer beryllium allowed to restrict Consensus’s integer and carnal entree to the rigs successful the Midland, Pennsylvania, facility. 

A Delaware justice has granted a impermanent restraining bid barring Mawson Infrastructure Group from utilizing the rigs astatine the Midland, Pennsylvania, facility. Source: Law360

The impermanent restraining is successful unit until the substance tin beryllium heard successful a preliminary injunction hearing.

Mawson Infrastructure Group and Consensus Colocation did not instantly respond to Cointelegraph's petition for comment. 

How the quality began

In a March 6 ineligible complaint, lawyers acting for Consensus accused Mawson of mining Bitcoin (BTC) with their rigs — valued astatine $30 cardinal — since Feb. 28, generating regular profits of betwixt $100,000 and $200,000 portion blocking entree to them some physically and done VPN access. 

Consensus and Stone Ridge signed a colocation statement with Mawson successful December 2023. 

They agreed to terminate the concern by the extremity of March 2025, with a gradual simplification successful capableness starring up to the deadline and a removal process scheduled to statesman connected March 3.

Mawson argues that it was owed fees and energy prepayments for February and March, and its colocation statement gives it the close to redirect the hashrate of Consensus’ miners and usage the proceeds to replenish the deposit.

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“On its face, it was operative lone anterior to April 1, 2024, and lone successful constrictive circumstances relating to the replenishment of a deposit,” lawyers acting for Consensus said successful the suit. 

“When Mawson began redirecting the hashrate connected Feb. 28, the deposit was afloat paid. And successful immoderate event, Mawson has stolen hashrate worthy galore times much than the $17,505.45 Mawson claims, without justification, that Consensus owes successful purported precocious fees.”

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