Bitcoin Mining Drama: Court Orders Host to Stop Playing Hide and Seek!

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In a twist that could only be described as a cosmic joke, a Delaware court has decided to grant a temporary reprieve to a Pennsylvanian Bitcoin mining firm, which is currently embroiled in a payment dispute with its hosting company. This means that the hosting provider can no longer play the role of the villain, blocking access and commandeering the miner’s 21,000 rigs like a pirate on a treasure hunt. 🏴‍☠️

Vice Chancellor Morgan Zurn, who apparently has a flair for the dramatic, granted a temporary restraining order on March 12. This was requested by the Bitcoin miner Consensus Colocation and its systems owner, Stone Ridge Ventures, against Mawson Hosting, the hosting company that seems to have mistaken their rigs for a personal amusement park. 🎢

The two firms have been locked in a battle of wits over alleged unpaid fees, the terms of their agreement, and Consensus’ plan to relocate. This disagreement has allegedly led to Mawson blocking the miner’s personnel from accessing the site, which is a bit like locking someone out of their own house while throwing a party inside. 🎉

In a plot twist worthy of a soap opera, Mawson claims they are allowed to use the rigs under the terms of their agreement with Consensus, asserting their right of first refusal for relocation plans. Meanwhile, the Bitcoin miner is desperately seeking injunctive relief to regain control of their equipment and prevent Mawson from using them like a kid with a new toy. 🧸

As part of the March 12 order, Mawson is now barred from using the hashrate from the miners and can no longer restrict Consensus’s digital and physical access to the rigs in the Midland, Pennsylvania facility. It’s like being told you can’t use the Wi-Fi at your own house! 📶

This temporary restraining order is in effect until the matter can be heard in a preliminary injunction hearing, which is sure to be a riveting episode in the ongoing saga of “As the Bitcoin Turns.”

Mawson Infrastructure Group and Consensus Colocation did not immediately respond to CryptoMoon’s request for comment, likely too busy plotting their next move in this high-stakes game of digital chess. ♟️

How the dispute began

In a legal complaint filed on March 6, lawyers for Consensus accused Mawson of mining Bitcoin (BTC) with their rigs—valued at a staggering $30 million—since February 28. This has allegedly generated daily profits of between $100,000 and $200,000 while blocking access to them both physically and through VPN access. Talk about a lucrative side hustle! 💰

Consensus and Stone Ridge signed a colocation agreement with Mawson back in December 2023, agreeing to terminate the partnership by the end of March 2025. They had a plan for a gradual reduction in capacity leading up to the deadline, with a removal process scheduled to begin on March 3. But alas, plans are often thwarted by the universe—or in this case, by Mawson’s interpretation of their agreement.

Mawson argues that it was owed fees and electricity prepayments for February and March, claiming their colocation agreement gives them the right to redirect the hashrate of Consensus’ miners and use the proceeds to replenish the deposit. It’s a classic case of “I owe you, but you owe me more!”

“On its face, it was operative only prior to April 1, 2024, and only in narrow circumstances relating to the replenishment of a deposit,” lawyers for Consensus stated in the suit, sounding a bit like they’re reading the fine print of a particularly confusing contract. 📜

“When Mawson began redirecting the hashrate on February 28, the deposit was fully paid. And in any event, Mawson has stolen hashrate worth many times more than the $17,505.45 they claim Consensus owes in purported late fees.” It’s a classic case of “who stole the cookie from the cookie jar?” 🍪

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2025-03-14 08:24