Riot Platforms Settles SBI Crypto Dispute for $20M, Pivots to AI and HPC

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Riot Platforms Ends SBI Legal Battle With $20M Settlement

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.

This agreement resolves a significant legal issue at a key moment, as the company ramps up its focus on artificial intelligence and powerful computing systems.

Riot and SBI Crypto reached a settlement agreement on February 16, 2026, which Riot announced in its annual report on March 3rd. This announcement came just a week after the start of a court case in Texas. The agreement fully resolves all disputes between the two companies and their subsidiaries, Whinstone.

The Dispute That Sparked the Lawsuit

The dispute started in April 2023 when SBI Crypto, part of the Japanese company SBI Holdings, filed a lawsuit against Whinstone. The suit claimed Whinstone didn’t fulfill the terms of their agreement to host crypto mining equipment at a facility in Rockdale, Texas. SBI Crypto alleged that the facility’s infrastructure wasn’t strong enough to support the agreed-upon mining levels, causing operational problems and a decrease in bitcoin production.

SBI originally asked for over $175 million to cover lost profits, plus another $50 million for equipment costs. But a court decision on February 2, 2026, prevented them from using the higher price of bitcoin when calculating damages. This significantly lowered the amount Riot Platforms might have to pay, ultimately leading to a settlement of $20 million.

A Second Major Settlement in Rockdale

This resolution from SBI comes after a major legal settlement reached in April 2025. Riot Platforms resolved a years-long dispute with Rhodium Enterprises for $185 million, ending their disagreement over hosting agreements at the Rockdale facility.

Riot purchased Rhodium’s mining operations for a total of $185 million, consisting of $129.9 million in cash and $49 million in company stock, and also refunded a $6.1 million security deposit. This deal gave Riot complete ownership of 125 megawatts of power generation, which they will now use entirely for their own operations.

The agreement resolved all legal disputes between the parties, meaning both sides dropped their lawsuits and appeals. Experts believe ending the hosting contract will save Riot Games over $90 million in the next six years, and also lower their quarterly legal expenses, which had reached around $5 million.

Record Revenue and a Strategic Pivot

Now that both legal issues have been settled, Riot Games announced a record revenue of $647.4 million for 2025, a significant increase from $376.7 million the previous year. As of early March 2026, the company also held 18,005 Bitcoin, worth around $1.19 billion.

Riot is also changing its overall business plan. While still involved in bitcoin mining, the company is expanding to offer essential infrastructure for artificial intelligence and powerful computing tasks.

Clearing Legal Overhangs to Refocus Growth

While the $20 million settlement with SBI is less than originally sought, it allows Riot to move past a difficult dispute. Along with the Rhodium agreement, this means Riot has successfully ended its old hosting deals and now has complete control over its Rockdale facilities.

Now that legal issues are mostly resolved and its systems are set up for its current goals, Riot Games is concentrating its investments on improving mining operations and expanding its artificial intelligence and high-performance computing capabilities, instead of spending on lawsuits.

This article is for informational purposes only and shouldn’t be considered financial, investment, or trading advice. Coindoo.com doesn’t support or suggest any particular investment or cryptocurrency. Always do your own research and talk to a qualified financial advisor before investing.

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2026-03-03 20:07