Bitcoin miner Rhodium fails to pay fees for $26 million

Riot Platforms, one of the largest North American bitcoin miners, has sued Texas rival Rhodium Enterprises for unpaid mining fees of $26 million.

According to Riot Platform’s Q1 2023 financial report, Rhodium breached its contract with Riot by failing to pay for services related to the use of Bitcoin mining facilities at Riot’s subsidiary Whinstone.

Riot filed a lawsuit against Rhodium Enterprises in the Texas Milam County Court for more than $26 million on May 2. In addition, Riot requested permission to terminate “certain agreements” with Rhodium.

“Because the litigation is at an early stage, we cannot assess the likelihood of an adverse outcome,” Riot lawyers explain.

The report showed that Riot mined 2,115 bitcoins in Q1 2023, up 50.5% from Q1 2022.

Riot Platforms is a mining company based in Texas. A subsidiary of Whinstone US is the largest miner in North America in terms of power, which reaches 750 MW.

Texas state legislators are considering a bill to eliminate tax breaks and subsidies that currently help mining companies expand their business.

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