Mining company Riot Platforms (formerly Riot Blockchain) has filed a lawsuit to recover over $26 million from Rhodium Enterprises.
According to report V SECthe latter allegedly violated the contract by not paying for the hosting and maintenance services of mining operations provided by a subsidiary of Whinstone.
The amount claimed includes repayment of debt and reimbursement of “reasonable legal fees and other costs”. Riot also asked the court to allow termination of the hosting contract.
Rhodium must respond to the complaint by May 30, 2023.
“Because this litigation is still in its early stages, we cannot reasonably estimate the likelihood of an adverse outcome or the magnitude of it should any outcome occur,” Riot said.
At the same time, the company recalled that on April 5, SBI Crypto filed a lawsuit against Whinstone with allegations of breach of contract, fraud, misrepresentation and improper treatment of the property taken into custody.
The SBI Holdings unit requested $15 million in lost profits and $16 million for lost equipment, legal and other costs, and interest.
As of June 13, 2022, the New York State Supreme Court is considering GMO Gamecenter USA’s complaint against Whinstone. A subsidiary of GMO Internet claimed the hosting provider violated the agreement, resulting in the loss of “income and savings.” In compensation, the applicant demanded over $50 million.
The Riot division filed a counterclaim against GMO Gamecenter USA, accusing it of refusing to settle claims voluntarily in accordance with the terms of the contract. Whinstone sought $25 million from the defendant for loss of profits and legal costs.
Regarding the results of the first quarter, Riot reported that the company mined 2115 BTC – about 50% more than the same period in 2022. The increase was ensured by the deployment of a “significant number of miners.” By the end of April, the company’s hashrate reached 10.5 EH/s with a fleet of 94,176 operating devices.
Riot Reports First Quarter 2023 Financial Results, Current Operational and Financial Highlights.
“Riot achieved a number of important milestones and records during the first quarter of 2023. In spite of damage to our immersion Buildings F and G during severe winter storms in…
— Riot Platforms, Inc. (@RiotPlatforms) May 10, 2023
The average cost of mining 1 BTC in the first quarter was $10,354 against $13,590 a year earlier.
The firm’s total revenue for the first three months reached $73.2 million, of which the cryptocurrency mining business brought in $48 million. The company posted a net loss of $55.7 million for the quarter.
As of March 31, Riot had $253.6 million in working capital and $202 million in bitcoin reserves.
Recall that the income of the mining company for the entire 2022 amounted to $259 million with the extraction of 5554 BTC.
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