Riot Platforms Sues Rhodium Enterprises Over $26M Dispute
Riot Platforms, a prominent player in the Bitcoin mining space, has filed a lawsuit against competitor Rhodium Enterprises, accusing them of owing $26 million in unpaid hosting fees. The suit, which was lodged in the district court of Milam County, Texas, on May 2, includes four of Rhodium’s subsidiaries as defendants, CoinDesk reports.
The allegations suggest that Rhodium “deliberately miscalculated” the hosting fees required for Riot’s services. The two firms initially agreed to share net revenue from Rhodium’s mining activities at Whinstone facilities, a subsidiary of Riot Platforms.
The dispute also extends to a specific demand response program in Texas, which incentivizes companies to cut back their electricity usage during peak demand times in return for payment or credit. Riot Platforms is seeking a court declaration to affirm that it doesn’t owe Rhodium any credits associated with this program.
The lawsuit’s resolution may influence relationships between Bitcoin mining companies and their hosting providers and could potentially reshape the dynamics of demand response programs in Texas. As the legal battle unfolds, the industry will closely watch this precedent-setting case.