Bitcoin mining firm Riot Platforms, through its subsidiary Whinstone US, has filed a lawsuit against Rhodium Enterprises, another mining company, claiming that Rhodium owes them USD 26 million in unpaid hosting fees. The dispute centers around their participation in demand response programs in Texas, which incentivize miners to reduce energy consumption by providing power credits. Riot alleges that Rhodium deliberately miscalculated the fees owed for hosting services at Riot’s Whinstone facilities. According to the lawsuit filed in Milam County’s district court on May 2, Rhodium entities failed to pay the amount owed from 2021 to the first quarter of 2023.
Whinstone asserts that it made attempts to collect the payments in May 2022 and April 2023, but Rhodium entities refused or neglected to pay, prompting the legal action. In addition to the unpaid fees, Riot also claims that Rhodium accrued power credits on its books for two years without proper rights. Riot is seeking a court declaration stating that it doesn’t owe any power credits to Rhodium. While previous contracts may have provided a legal basis for the credits, Riot argues that subsequent agreements in December 2020 superseded them.
Riot’s allegations were initially disclosed in its first-quarter earnings report. Riot confirmed the lawsuit but declined to comment, while Rhodium Enterprises has not provided a statement on the matter.