Cryptocurrency mining firm Riot Platforms formerly Riot Blockchain is seeking to recover “more than $26 million” in alleged unpaid fees from Texas-based Bitcoin (BTC) miner Rhodian Enterprises, according to its first quarter report. of 2023.
Riot’s Q1 2023 financial report stated that Riot’s wholly-owned subsidiary Whinstone filed a petition on May 3 in the 20th District Court of Milam County, Texas, alleging that Rhodium Enterprises had breached its contract by failing to pay “certain fees for accommodation and services under agreements” Riot is seeking to recover “more than $26 million,” in addition to attorneys’ fees and other expenses incurred during the legal process, the report said.
In addition, it was requested that “certain hosting agreements” with Rhodium be terminated and that “no power credits be owed to Rhodium.” Although the fees were declared unpaid, Riot was transparent with stakeholders, acknowledging that the “likelihood” of recovering the funds at this stage is uncertain
Riot anticipates that Bitcoin mining companies will continue to experience significant challenges due to the significant drop in Bitcoin’s price and “other domestic and global macroeconomic factors,” as seen by the industry in 2022 It was claimed that given Riot’s “relative position” in the sector, its “liquidity and absence of long-term debt”, it is positioned to “benefit from such consolidation.