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.
Released on May 10, 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”.[financierodelprimertrimestrede2023deRiotafirmabaqueWhinstone-filialpropiedadalcienporciendeRiot-presentóunapeticiónel3demayoanteelTribunaldel20ºDistritodelCondadodeMilamTexasalegandoqueRhodiumEnterpriseshabíaincumplidosucontratoalnopagar”determinadastarifasdealojamientoyserviciosenvirtuddeacuerdos”
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. He pointed:
“Since this litigation is still in this early phase, we cannot reasonably estimate the probability of an unfavorable outcome or the magnitude of such an outcome, if any.”
It was reported that Rhodium was notified on May 8, and they have until May 30 to respond.
The report also highlighted the growth of Riot’s mining operations, stating that it had mined “2,115 bitcoins” (BTC), representing a 50.5% increase over the number of bitcoins mined during Q1 2022.
In addition, the report assured stakeholders that Riot has no relationship with banks that have suffered recent bankruptcies. In it it was stated:
“We had no banking relationship with Silicon Valley Bank, Silvergate Bank or First Republic Bank, and we currently hold our cash and cash equivalents at multiple banking institutions.
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”.
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information presented here should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the entire amount invested may be lost. The services or products offered are not directed or accessible to investors in Spain.