Riot Platforms and Rhodium sign a term list and settlement agreement to acquire some of its assets at a consideration of US$185 million

PANews reported on March 22 that according to PRNewswire, Nasdaq-listed Bitcoin mining company Riot Platforms, Inc. announced that it has signed a non-binding term list and settlement agreement. Its wholly-owned subsidiary Whinstone may acquire specific 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, a refund of Rhodium's electricity margin of US$6.1 million, and a $49 million Riot shares, which will transfer all tangible property ownership at the Rockdale mine, including all ASIC miners, etc. Whinstone and Rhodium will also each revoke all existing lawsuits, including all appeals and waive future claims that are not related to the completion of the transaction.

Previously, Rhodium filed for voluntary bankruptcy in August last year under Chapter 11 of the U.S. Bankruptcy Court for the Southern District of Texas, disclosed up to $100 million in debt and sold its Temple mine for $40.6 million in December, but most of its mining machines were mainly entrusted in the Rockdale mine. Last December, a group of investors filed a class action lawsuit against the founder of Rhodium, accusing him of fraud, intentionally misleading investments by concealing key information and conducting self-operated transactions totaling $33 million.