Rhodium Enterprises, the BTC mining company that recently filed for bankruptcy, has been granted a court order to borrow $30 million or 500 BTC from Galaxy Digital. 📈

- USD loan interest rate: 14.5%

- BTC loan interest rate: 9.5%

- Can repay in USD based on market price

This bankruptcy loan strategy is quite unusual given the volatility of BTC prices. BTC prices have fallen nearly 11% over the past month. 📉

Rhodium has filed for voluntary Chapter 11 bankruptcy, revealing debts of up to $100 million and assets of $100-500 million.

BTC mining companies are under great financial pressure due to reduced mining rewards and mounting debt. Some companies like Bitfarms have acquired Stronghold Digital Mining for around $125 million.

What do you think about this BTC loan strategy? Comment below! 💬