PANews reported on August 27 that according to Cointelegraph, Bitcoin mining company Rhodium Enterprises has filed for voluntary bankruptcy under Chapter 11 of the U.S. Bankruptcy Court for the Southern District of Texas, with liabilities of up to $100 million. The document was filed on August 24 and includes six subsidiaries - Rhodium Encore, Jordan HPC, Rhodium JV, Rhodium 2.0, Rhodium 10MW and Rhodium 30MW. According to the document, the company's debts are between $50 million and $100 million, while its total assets are estimated to be between $100 million and $500 million.

Rhodium's bankruptcy follows reports that Rhodium's companies had been in financial trouble. Rhodium Enterprises, which owns Rhodium Encore and Rhodium 2.0, reportedly failed to repay a $54 million loan owed to lenders in July. In 2021, Rhodium raised $78 million in loans for its subsidiaries.

The company reportedly proposed two debt restructuring proposals before the deadline, but disagreements among shareholders led to the default. Under a voluntary Chapter 11 bankruptcy, the company will be able to restructure its debt while continuing to operate, allowing it to negotiate a repayment plan under revised terms.