Mining company Rhodium has filed for bankruptcy

US-based cryptocurrency mining firm Rhodium has filed for bankruptcy in a court in the Southern District of Texas. According to documents, the company has debts ranging from $50 million to $100 million.

Previously, the mining firm has repeatedly had financial difficulties - back in 2023, Riot Platforms filed a lawsuit against Rhodium for $26 million, and in July of this year the company failed to pay $54 million in loans. Before filing for bankruptcy, Rhodium was working on two debt restructuring proposals, but was unable to find support from all parties involved.

Rhodium's 6 subsidiaries - Rhodium Encore, Jordan HPC, Rhodium JV, Rhodium 2.0, Rhodium 10MW and Rhodium 30MW - are also named in the bankruptcy filing. Rhodium has selected law firm Quinn Emanuel Urquhart & Sullivan as general counsel for the bankruptcy, while Province will act as restructuring advisors.

Note that under Chapter 11 of the U.S. Bankruptcy Act (Voluntary Bankruptcy), the company will be able to restructure its debts and continue operations. In 2022, the mining firm Core Scientific did the same thing, using a bankruptcy filing to protect itself from creditors.