Riot Platforms has agreed to pay $20 million in cash to SBI Crypto, bringing an end to a high-profile legal battle tied to a failed 2021 bitcoin mining hosting deal.
Key Takeaways
Riot will pay $20 million to settle its dispute with SBI Crypto.
A key court ruling sharply reduced potential damages before the deal.
The agreement follows a $185 million Rhodium settlement in 2025.
Riot reported record 2025 revenue and is pivoting toward AI and HPC infrastructure.
The agreement removes a major legal overhang just as the company accelerates its pivot toward AI and high-performance computing infrastructure.
The settlement was verbally reached on February 16, 2026, and disclosed in Riot’s annual report on March 3, only a week after trial proceedings began in federal court in Texas. The deal represents a global resolution of all claims by SBI Crypto and counterclaims from Riot’s subsidiary, Whinstone.
The Dispute That Sparked the Lawsuit
The conflict began in April 2023 when SBI Crypto, a subsidiary of Japan’s SBI Holdings, sued Whinstone over alleged breaches of a hosting agreement at Riot’s Rockdale, Texas facility. SBI claimed the infrastructure could not support the promised mining capacity, leading to operational failures and reduced bitcoin output.
Initially, SBI sought more than $175 million in lost profits, plus around $50 million related to equipment costs. However, a key court ruling on February 2, 2026 blocked the use of appreciated bitcoin prices in the damages calculation. That decision sharply reduced Riot’s potential liability and opened the door to the $20 million compromise.
A Second Major Settlement in Rockdale
The SBI resolution follows another significant legal deal completed in April 2025. Riot finalized a $185 million settlement with Rhodium Enterprises, ending a separate, years-long dispute over hosting contracts at the same Rockdale site.
Under that agreement, Riot paid $129.9 million in cash, issued nearly $49 million in common stock, and returned a $6.1 million power security deposit. In return, the company acquired Rhodium’s mining assets and secured full control of 125 megawatts of power capacity, transitioning the facility entirely to self-use.
The deal also included a mutual dismissal of all lawsuits and appeals, effectively providing a global release between the parties. Analysts estimated that exiting the hosting arrangement could save Riot more than $90 million over six years, while also reducing legal costs that had reportedly climbed to roughly $5 million per quarter.
Record Revenue and a Strategic Pivot
With both disputes now resolved, Riot reported record revenue of $647.4 million for fiscal year 2025, up from $376.7 million in 2024. As of early March 2026, the company held 18,005 BTC, valued at approximately $1.19 billion.
At the same time, management is reshaping Riot’s long-term strategy. The company is moving beyond a pure bitcoin mining model and increasingly positioning itself as a provider of infrastructure for artificial intelligence and high-performance computing workloads.
Clearing Legal Overhangs to Refocus Growth
The $20 million settlement with SBI may be far below the original claims, but strategically it closes a contentious chapter. Combined with the Rhodium agreement, Riot has effectively exited legacy hosting contracts and consolidated full control of its Rockdale operations.
With litigation risks largely contained and infrastructure fully aligned with its new direction, Riot now appears focused on deploying capital toward mining efficiency and AI-HPC expansion rather than courtroom battles.
