According to Odaily, Nathan Nichols, the co-CEO of Bitcoin mining company Rhodium Enterprises, has resigned following the company's sale of its Temple, Texas mining facility for $40.6 million in cash. The resignation, announced in an email to investors last week, will take effect after the New Year. This development comes shortly after creditors filed a lawsuit against Nichols and other co-founders, alleging fraud.
Rhodium also informed investors that it had previously secured $15 million in debtor-in-possession financing from Galaxy Digital, part of a $30 million package. Following the completion of the Temple facility sale on December 18, the company fully repaid its debt to Galaxy, including fees and interest, with $16 million from the proceeds.
In a press release last Friday, Rhodium stated its intention to resume its mining machine hosting contract at the Riot Rockdale facility, claiming a legal victory against the hosting party. Rhodium's mining machines are primarily hosted at Riot's Whinstone facility in Rockdale, Texas, with the remainder at its proprietary Temple facility.
Rhodium filed for Chapter 11 bankruptcy protection in August, citing significant impacts on its mining operations due to deteriorating relations with Riot since 2023, which led to loan defaults. The bankruptcy court later approved the auction of Rhodium's Bitcoin mining assets at the Temple facility.
In August, Rhodium Enterprises voluntarily filed for bankruptcy under Chapter 11 in the Southern District of Texas, revealing debts of up to $100 million. The filing, submitted on August 24, included six subsidiaries: Rhodium Encore, Jordan HPC, Rhodium JV, Rhodium 2.0, Rhodium 10MW, and Rhodium 30MW. The documents indicated that the company's debts ranged between $50 million and $100 million, while its total assets were estimated between $100 million and $500 million.