Crypto mining firm Rhodium Blockchain is facing lawsuits under hosting contracts.
It has been reported that formerly Riot Blockchain may file a lawsuit against Rhodium in the future. The company is seeking to terminate “certain hosting agreements” and avoid paying back outstanding power loans.
Bitcoin Miner Rhodium May Face Litigation
Crypto mining company Riot Platforms, formerly Riot Blockchain, has taken legal action against Bitcoin miner Rhodium Enterprises. Rhodium Enterprises has filed a petition seeking “more than $26 million” alleging that Whinstone, a wholly owned subsidiary of Riot, violated its contract with Riot by failing to pay hosting and service fees associated with the use of its Bitcoin mining facilities.
Riot has also requested permission to terminate “certain hosting agreements” with Rhodium and offered to be exempted from repaying outstanding power credits upon expiration. At this stage, however, the estimation of the probability of recovering outstanding fees remains unclear.
It was announced that Riot mined 2,115 Bitcoins in the first quarter of 2023, an increase of 50.5 percent compared to the first quarter of 2022. The company stated that it will continue to face challenges in the crypto mining industry, and that its “lack of liquidity and long-term debt” positions it well to “benefit from this type of consolidation.” It was also emphasized that Riot does not have any relationship with banks that have recently gone bankrupt.
