Rhodium Mining Company Files for Chapter 11 Bankruptcy Amid Financial Struggles

U.S.-based cryptocurrency mining firm Rhodium has filed for Chapter 11 bankruptcy in the Southern District of Texas, with reported debts ranging between $50 million and $100 million. The company, which has faced ongoing financial challenges, was previously sued by Riot Platforms in 2023 for $26 million. More recently, in July, Rhodium defaulted on $54 million in loans.

Before seeking bankruptcy protection, Rhodium attempted two separate debt restructuring plans but was unable to secure the necessary backing from all stakeholders involved. The bankruptcy filing also includes six of Rhodium’s subsidiaries: Rhodium Encore, Jordan HPC, Rhodium JV, Rhodium 2.0, Rhodium 10MW, and Rhodium 30MW.

The company has enlisted the law firm Quinn Emanuel Urquhart & Sullivan as general counsel and brought on Province as restructuring advisors to navigate the bankruptcy process. The Chapter 11 filing allows Rhodium to reorganize its debts while continuing operations, a strategy similarly employed by Core Scientific in 2022 to fend off creditors.

This move marks a critical juncture for Rhodium as it seeks to stabilize its financial situation and restructure its obligations amidst a turbulent landscape for cryptocurrency miners.

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