Bybit
Riot Settles SBI Crypto Dispute for $20M
Riot Platforms has reached a $20 million cash settlement with SBI Crypto, ending a prolonged legal dispute over Bitcoin mining hosting services at the Whinstone facility in Rockdale, Texas.
The lawsuit was filed in April 2023. SBI Crypto alleged breach of contract, fraud, and negligent bailment related to a colocation agreement terminated in 2021. Riot acquired Whinstone in 2021 and operates the site as one of its flagship Bitcoin mining campuses.
According to Riot’s 2025 annual filing, the case advanced to trial in February 2026. However, the parties verbally agreed to a global settlement on Feb. 16, resolving all current and future claims.
Damage Claims Reduced Before Settlement
SBI Crypto initially sought more than $175 million in alleged lost profits. The claims also included over $50 million in equipment replacement costs. Later expert reports attempted to push total damages above $350 million.
The court limited portions of SBI’s damages model, including calculations tied to Bitcoin price appreciation. Trial proceedings began on Feb. 9, 2026, before a U.S. magistrate judge.
Riot also filed counterclaims, including breach of contract and fraudulent inducement. All disputes were consolidated into the final settlement agreement.
Impact on the Bitcoin Mining Sector
The dispute centered on colocation services and ASIC machine hosting. Such cases highlight operational risks in Bitcoin mining infrastructure and data center agreements.
Riot operates one of the largest mining facilities in the United States. By settling for $20 million, the company significantly reduced potential financial exposure.
The resolution removes legal uncertainty and allows Riot to focus on expanding energy infrastructure and high-performance computing operations. For the broader crypto mining industry, the case underscores the importance of contract clarity and risk management in hosting partnerships.
