Crypto mining firm Riot Platforms is seeking to terminate “certain hosting agreements” with Rhodium Enterprises and be relieved of refunding any outstanding power credits.
Crypto mining company Riot Platforms – formerly Riot Blockchain – has filed a lawsuit against Texas-based Bitcoin BTC ($27,368) miner Rhodium Enterprises will recover “more than $26 million” in unpaid mining fees.
According to Riot Platform’s First Quarter 2023 Financial Report released on May 10, Rhodium allegedly breached its contract with Riot by not paying admission fees and fees related to the use of the Bitcoin mining company from Whinstone, a subsidiary of 100% from Riot. A lawsuit was filed against Rhodium Enterprises on May 2 in Milam County Court in Texas, seeking to recover “more than $26 million” in legal fees.
In addition, Riot requested the right to terminate “certain hosting agreements” with Rhodium and submitted that it be released from outstanding license fees upon termination. It is understood that the most likely plan to recover the outstanding debts at this time is uncertain. He said:
“Because this litigation is still at this early stage, we cannot accurately predict what the outcome will be or what the outcome will be, if any.”
Rhodium was made on May 8, with a response time of May 30, according to the report. Meanwhile, the report also revealed that Riot mined “2,115 Bitcoins” in Q1 2023, a 50.5% increase from Q1 2022.
It was also confirmed that Riot had nothing to do with the recent bank meltdown:
“We don’t have a banking relationship with Silicon Valley Bank, Silvergate Bank or First Republic Bank, but currently hold our funds in close proximity to several banks.”
Riot predicts that the crypto mining industry will continue to face challenges in 2023 due to the “significant decline in the price of Bitcoin” and “other national and international factors macroeconomic factors”.
It is said that Riot’s “relative position” in the company, as well as its “liquidity and long-term debt”, puts it in a good position to “benefit from such support”.
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