PANews reported on March 22 that according to PRNewswire, Riot Platforms, Inc., a Nasdaq-listed Bitcoin mining company, announced that it has signed a non-binding list of terms and a settlement agreement, and its wholly-owned subsidiary Whinstone may acquire certain assets owned by Bitcoin mining company Rhodium Encore LLC in the Rockdale mine. According to the terms, Whinstone will provide Rhodium with a total consideration of US$185 million, including US$129.9 million in cash, the return of Rhodium's electricity deposit of US$6.1 million, and Riot shares worth US$49 million, and Rhodium will transfer ownership of all tangible property located in the Rockdale mine, including all ASIC mining machines. Whinstone and Rhodium will also each withdraw all existing lawsuits, including all appeals, and waive future claims not related to the completion of the transaction.
Earlier news, Rhodium filed for voluntary bankruptcy under Chapter 11 of the U.S. Bankruptcy Court for the Southern District of Texas in August last year, disclosing debts of up to $100 million, and sold its Temple mine for $40.6 million in December, but most of its mining machines are mainly hosted in the Rockdale mine. In December last year, a group of investors filed a class action lawsuit against the founder of Rhodium, accusing him of fraud and intentionally misleading investments totaling $33 million by concealing key information and conducting proprietary trading.
