A Delaware court has ruled against Bitcoin hosting provider Mawson Hosting LLC, barring the company from seizing or using mining equipment owned by Consensus Colocation PA LLC and Stone Ridge Ventures II LLC. The decision follows allegations that Mawson had blocked access to 21,000 Bitcoin mining rigs and diverted their hash rate for its own benefit.
Vice Chancellor Morgan Zurn granted a temporary restraining order on March 12 in response to a request from Consensus Colocation and Stone Ridge Ventures.
The order prevents Mawson from restricting access to the mining facility in Midland, Pennsylvania, and from operating the equipment without the owners’ authorization. The court order also forbids Mawson from electronically accessing or controlling the SR-owned machines.
The dispute centers on an alleged nonpayment issue, with Mawson claiming the right to control the miners based on unpaid fees and the terms of its agreement with Consensus.
The court’s order temporarily restores control to Consensus and Stone Ridge Ventures while the case proceeds toward a preliminary injunction hearing.
Dispute Over Unpaid Fees and Relocation Plans
Consensus and Stone Ridge Ventures had entered into a colocation agreement with Mawson in December 2023, under which Mawson provided hosting services for the mining rigs. The agreement was set to conclude by the end of March 2025, with a gradual reduction in capacity before full termination.
Consensus planned to relocate its operations and alleged that Mawson had unlawfully taken control of the miners on February 28, preventing its personnel from accessing the site. T
he company accused Mawson of using the rigs for personal gain, allegedly generating daily profits between $100,000 and $200,000 from Bitcoin mining operations since the takeover.
Mawson contends that the contract allowed it to redirect the hash rate from the rigs if Consensus failed to meet financial obligations.
The firm claims Consensus owed electricity prepayments and other fees for February and March and that the colocation agreement granted it the right of first refusal regarding relocation.
Consensus disputes Mawson’s claims, arguing that any right to redirect the hash rate expired on April 1, 2024, and only applied under specific circumstances related to replenishing a deposit.
According to Consensus, the deposit was fully paid at the time of Mawson’s actions. Legal filings indicate that Mawson justified its seizure of the mining rigs over an alleged $17,505.45 in unpaid fees—a fraction of Mawson’s estimated revenue from the redirected mining operations.
The restraining order remains in place until the matter is resolved in a preliminary injunction hearing. Neither Mawson Infrastructure Group nor Consensus Colocation has issued public statements on the court’s decision.