Bitcoin Mining Firm Rhodium Files for Bankruptcy Protection
The United States Bankruptcy Court for the Southern District of Texas has received a voluntary bankruptcy filing under Chapter 11 from Rhodium Enterprises, a Bitcoin mining firm.
The company has disclosed liabilities of up to $100 million, along with assets estimated between $100 million and $500 million. This filing includes six subsidiaries – Rhodium Encore, Jordan HPC, Rhodium JV, Rhodium 2.0, Rhodium 10MW, and Rhodium 30MW.
This recent bankruptcy filing comes after reports of financial troubles within the Rhodium Enterprises group. In July, Rhodium failed to repay a $54 million loan to lenders, and in 2021, it raised $78 million in loans for its subsidiaries.
Despite two previous debt restructuring proposals, disagreements among stakeholders ultimately led to a default.
Under Chapter 11, Rhodium will be able to continue operating while reorganizing its debts, giving the company the opportunity to negotiate a new repayment plan with revised terms.
