Riot, SBI Crypto reach $20 million settlement in Texas bitcoin mining dispute

Riot Platforms agreed to pay SBI Crypto $20 million in cash to resolve a three-year legal battle over a terminated bitcoin mining hosting deal at its Whinstone facility in Rockdale, Texas, according to the company's annual report filed Monday.

The settlement, verbally agreed upon on Feb. 16, came just one week after the trial commenced before U.S. Magistrate Judge Derek Gilliland in the Western District of Texas. The case originated from an April 2023 lawsuit filed by SBI Crypto against Whinstone, alleging breach of contract, fraud, and negligent bailment related to a colocation services agreement that ended in 2021.

Riot acquired Whinstone on May 26, 2021, for 11.8 million shares of common stock and $80 million in cash, according to a company statement at the time, and has since operated the Rockdale site as a flagship mining and data center campus.

Per the filing, the litigation proceeded through several key stages. Whinstone moved to dismiss SBI's amended complaint in July 2023, a motion the court denied on Oct. 25, 2023. On Nov. 25, 2024, Whinstone filed counterclaims against SBI for breach of contract and fraudulent inducement.

SBI had sought to recover more than $175 million in purported lost profits tied to bitcoin price appreciation plus over $50 million in equipment replacement costs, exemplary damages, attorneys' fees, and interest. The company also attempted to update its damages to more than $350 million through an expert report, which the court later struck, Riot said in the filing. 

On Feb. 2, the court granted Riot's motion for partial summary judgment, disallowing SBI from using appreciated bitcoin prices in its damages model. Trial began Feb. 9, with the parties reaching the “global settlement” eight days later.

The resolution follows a separate major legal exit noted in the same filing. On April 28, 2025, Riot’s Whinstone subsidiary completed the "Rhodium Settlement," a $185 million transaction that included $129.9 million in cash and 6.9 million shares of Riot stock. That deal terminated legacy hosting contracts through 2030 and saw Riot assume 125 MW of power capacity at the Rockdale facility.

Riot reported $647 million in revenue for 2025, up from $376.7 million in 2024. The company said it produced 5,686 BTC during the year, compared with 4,828 BTC in the prior period, and now holds more than 18,000 BTC.