Shocking Bankruptcy Filing from the Giant US Bitcoin Company: Unable to Pay Its Debts!
A giant US-based Bitcoin (BTC) mining company has filed for bankruptcy.
Bitcoin mining company Rhodium Enterprises has filed for voluntary bankruptcy under Chapter 11 with the US Bankruptcy Court for the Southern District of Texas. The company disclosed its debts of up to $100 million with this filing.
According to the filing filed on August 24, Rhodium Enterprises, as well as 6 subsidiaries such as Rhodium Encore, Jordan HPC, Rhodium JV, Rhodium 2.0, Rhodium 10MW and Rhodium 30MW, were also included in the bankruptcy process.
The documents state that the company's debts range between $50 million and $100 million, while its total assets are estimated to be between $100 million and $500 million.
Rhodium's bankruptcy filing came in light of the company's previous financial difficulties. The company's Rhodium Encore and Rhodium 2.0 subsidiaries were unable to repay $54 million in loans to creditors in July. In 2021, Rhodium had raised $78 million in loans for its subsidiaries.
It was reported that two separate debt restructuring proposals were made before the due date, but disagreements between stakeholders led to a default.
Under the Chapter 11 voluntary bankruptcy process, the company will be able to continue its operations while gaining the opportunity to restructure its debts and negotiate its debt repayment plan under revised terms.
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