Bitcoin mining giant Riot Platforms has reached a $20 million settlement with SBI Crypto to resolve a long-running legal dispute over mining operations at Riot's Rockdale, Texas facility. The agreement was verbally reached on February 16, 2026, and formally disclosed in Riot's annual report filed with the SEC on March 3, 2026.
The conflict originated in April 2023 when SBI Crypto, a subsidiary of Japan's SBI Holdings, sued Riot's subsidiary Whinstone. The lawsuit alleged breaches of a hosting agreement, claiming the infrastructure at the Rockdale site 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 approximately $50 million related to equipment costs.
A pivotal court ruling on February 2, 2026, significantly altered the case's trajectory by blocking the use of appreciated bitcoin prices in the damages calculation. This decision sharply reduced Riot's potential financial liability and paved the way for the $20 million compromise. The settlement represents a global resolution of all claims by SBI Crypto and counterclaims from Whinstone.
This resolution follows another major legal settlement Riot completed in April 2025 with Rhodium Enterprises for $185 million. That deal involved a cash payment of $129.9 million, issuance of nearly $49 million in common stock, and the return of a $6.1 million power security deposit. In exchange, Riot acquired Rhodium's mining assets and secured full control of 125 megawatts of power capacity at the Rockdale facility.
For Riot, clearing these legal overhangs is strategically crucial as the company reports record financials and pivots its business model. Riot posted 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. Management is now shifting focus beyond pure bitcoin mining toward becoming a provider of infrastructure for artificial intelligence (AI) and high-performance computing (HPC) workloads.
The settlement is framed in securities filings as a cleanup of legacy litigation risk, converting an open-ended claims process into a defined financial outcome. This materially reduces operational uncertainty for the company regarding cash exposure, contract enforcement, and forward capacity strategy. Stakeholders will now monitor court dismissal steps and the implementation mechanics of the settlement.
