In response to its Q1 2023 report, crypto mining firm Riot Platforms — previously Riot Blockchain — is trying to reclaim “greater than $26 million” in allegedly unpaid charges from Texas-based Bitcoin (BTC) miner Rhodian Enterprises.

Riot’s financial report for the primary quarter of 2023, launched Might 10, states that Whinstone, a completely owned subsidiary of Riot, filed a petition within the twentieth Circuit Courtroom of Milam County, Texas on Might 3. It was alleged that Rhodium Enterprises breached its contract by failing to pay “sure internet hosting and repair charges below the agreements.”

Riot needs to get better “greater than $26 million,” plus attorneys’ charges and different prices incurred through the courtroom proceedings, as detailed within the report.

It additionally requested that “sure internet hosting agreements” with Rhodium be terminated and “no electrical energy credit will probably be owed to Rhodium”.

Excerpt from Riot Platforms quarterly report for the interval ended March thirty first. Supply: SEC

Regardless of citing disclosure of unpaid charges, Riot has been clear with stakeholders, acknowledging that “the probability” of the funds being returned is unsure at this time. It acknowledged:

“As this litigation is in its early levels, we can’t fairly assess the probability of, or the magnitude of, an adversarial consequence, if any.”

Rhodium was reported to have been delivered on Might eighth and had till Might thirtieth to answer.

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The report additionally highlighted Riot’s progress in mining operations, stating that the corporate mined “2,115 bitcoins” (BTC), a 50.5% improve from the variety of bitcoins mined within the first quarter of 2022.

Moreover, the report reassured stakeholders that Riot has no ties to the banks which have just lately suffered failures. It acknowledged:

“We had no banking relationships with Silicon Valley Financial institution, Silvergate Financial institution or First Republic Financial institution and at the moment maintain our money and money equivalents with a number of banking establishments.

Riot anticipates that bitcoin miners will proceed to face important challenges because of bitcoin’s important worth decline and “different nationwide and international macroeconomic components,” because the business noticed in 2022.

It defined that Riot was capable of “profit from such a consolidation” due to its “relative place” within the business, its “liquidity and lack of long-term debt.”

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