A shocking incident took place last week at the site of one of the biggest Bitcoin mining operations in North America. Rhodium Enterprises, a company that runs a 125MW Bitcoin mining facility in Rockdale, Texas, was abruptly evicted by its host, Whinstone Inc., a subsidiary of Riot Platform. The eviction was carried out by armed security personnel who entered the premises and ordered the staff to leave.
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This news was reported by Bitcoin Magazine, a leading source of information and analysis on the Bitcoin industry. According to the report, Rhodium Enterprises had signed a long-term contract with Whinstone Inc. to host its mining equipment at the Rockdale site, which is claimed to be the largest data center in the world. However, Whinstone Inc. allegedly breached the contract and terminated the hosting agreement without prior notice or justification.
The reason for this sudden move is unclear, but some speculate that it may be related to the recent acquisition of Whinstone Inc. by Riot Platform, a publicly traded company that also operates its own Bitcoin mining business. Riot Platform announced the acquisition of Whinstone Inc. in April 2021 for $651 million, making it one of the largest players in the North American Bitcoin mining market. Some observers suggest that Riot Platform may have wanted to eliminate its competition or gain access to more power and space for its mining operations.
The eviction of Rhodium Enterprises has caused significant losses and damages to the company and its customers, who rely on its mining services to generate income and secure the Bitcoin network. Rhodium Enterprises has stated that it is seeking legal action against Whinstone Inc. and Riot Platform for breach of contract, fraud, and interference with business relations. The company has also appealed to the Bitcoin community for support and solidarity.
This incident raises serious questions about the security and stability of the Bitcoin mining industry in North America, which has been growing rapidly in recent years due to favourable regulations, low electricity costs, and abundant renewable energy sources. It also exposes the risks and challenges that Bitcoin miners face
when dealing with third-party hosting providers, who may not have their best interests at heart or respect their contractual obligations.
Source:
https://bitcoinmagazine.com/legal/texas-bitcoin-mining-operation-shutdown-by-hosts-armed-security