JAKARTA - The crypto mining company Riot Platforms, formerly known as Riot Blockchain, has taken legal action against Texas-based Bitcoin mining company Rhidium Enterprises to regain "more than US$26 million (Rp385 million)" in alleged unpaid mining facility costs.
According to Riot Platforms' 1st quarter financial report published on May 10, Rhodium allegedly violated a contract with Riot by not paying a hosting fee and service related to the use of Whinstone's Bitcoin mining facility, a wholly subsidiary of Riot.
On May 2, a petition was filed against the Rhidium Enterprises at the Melam County Court in Texas, which aims to regain "more than US$26 million" and get reimbursement of the legal costs covered.
In addition, Riot requested permission to terminate "several hosting agreements" with the Rhidium and proposed to be exempt from the obligation to pay unpaid power credits following the shutdown.
It is acknowledged that the estimation of the possibility of getting back unpaid fees at this stage is uncertain. Cointelegraph noted the report:
"Because this litigation is still in its early stages, we cannot reasonably estimate the possibility of an unfavorable result or the magnitude of the result, if any."
The Rhidium was served on May 8, with a deadline to provide a response until May 30, according to the report.
Meanwhile, the report also revealed that Riot had mined "2,115 Bitcoins" in the first quarter of 2023, an increase of 50.5% compared to the first quarter of 2022.
The report also notes that Riot has no affiliation with the recent bank fall:
"We have no banking relationship with Silicon Valley Bank, Silvergate Bank, or First Republic Bank, and are currently keeping our cash and cash equivalents in several banking institutions."
Riot estimates that crypto mining companies will continue to face challenges in 2023 due to "significant Bitcoin price declines" and "national and other global macroeconomic factors."
It was stated that Riot's "relative position" in the industry, as well as "liquidity and absence of long-term debt," put him in a good position to "take benefits from the consolidation."
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