Bitcoin Miner Rhodium Files for Bankruptcy With Debt Up to $100 Million
27.08.2024
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Mining company Rhodium Enterprises has filed for Chapter 11 bankruptcy in the United States.
The Texas filing also 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 range from $50 million to $100 million, with total assets estimated in the range of $100-500 million.
The bankruptcy follows reports from TheMinerMag about the company's financial difficulties. In 2021, it raised $78 million in debt financing to develop two liquid-cooled Bitcoin mining projects, Project Encore (25 MW) and Project 2.0 (35 MW).
In August 2023, the company's management made it clear that a $54 million loan due July 30, 2024, would not be repaid on time.
Before the deadline, Rhodium made two debt restructuring proposals, but "some stakeholders did not agree with the plans" and the company defaulted.
In 2021, Rhodium was the fifth-largest public miner in cryptocurrency mining volume after Core Scientific, Marathon, Riot, and Bitfarms with 2,847 BTC. In 2022, the company mined 3,576 BTC.
